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{{DISPLAYTITLE: How to create and work within a BPM Center of Excellence}}
== Introduction ==

To achieve the organizational objectives of business process management (BPM),
the implementation of a BPM office or center of excellence (CoE) is a key component
of success in the management of business processes.

BPM is not a discipline that can be done on one day and then disregarded the next; it must be considered as a consistent business stream that flows through an organization, preventing the organization and its processes from slipping back, making ongoing improvements to organizational processes, and providing the means to execute the strategic objectives of the various stakeholders. This business stream - the stewardship or management of business processes - is similar to other business disciplines that require an initiation point and a means to ensure ongoing sustainability as the organization builds its maturity.

The BPM CoE acts as both the initiation point and the organization’s custodian and point of accountability of its processes, tasked with ensuring sustainability, maturity, governance, alignment, as well as the measurements, reporting, templates, and artifacts that makes BPM successful.

'''Document''': [[Media:How to create and work within a BPM Center of Excellence.pdf|Download the BPM Center of Excellence document]]

[[Category: BPM Concepts & Method Knowledge]]

← Older revision		Revision as of 09:47, 19 September 2018
Line 1:		Line 1:
−	~~{{DISPLAYTITLE: How to create and work within a BPM Center of Excellence}}~~
−	~~== Introduction ==~~

−	~~To achieve the organizational objectives of business process management (BPM),~~
−	~~the implementation of a BPM office or center of excellence (CoE) is a key component~~
−	~~of success in the management of business processes.~~
−
−	BPM is not a discipline that can be done on one day and then disregarded the next; it must be considered as a consistent business stream that flows through an organization, preventing the organization and its processes from slipping back, making ongoing improvements to organizational processes, and providing the means to execute the strategic objectives of the various stakeholders. This business stream - the stewardship or management of business processes - is similar to other business disciplines that require an initiation point and a means to ensure ongoing sustainability as the organization builds its maturity.
−
−	The BPM CoE acts as both the initiation point and the organization’s custodian and point of accountability of its processes, tasked with ensuring sustainability, maturity, governance, alignment, as well as the measurements, reporting, templates, and artifacts that makes BPM successful.
−
−
−	~~=== The Challenge BPM CoE Faces ===~~
−	For most organizations, a number of pain points with respect to implementing and sustaining a successful BPM CoE exist. As they do this, they need to be aware of what happens when a BPM CoE is not in place to guide and govern the overall BPM. For the executive the reasons as well as the consequences of not implementing a successful and ongoing BPM within their organization are important for executives to understand.
−
−	*'''Not managing the processes across all areas.''' Within the organization, only some of the parts have completed detailed process mapping, orchestration, and optimization. This leaves process integration across the entire enterprise structure disjointed as unmanaged, a process will simply stop at the end of a department, line of business, or other business unit’s logical boundary. The result is the hampering of service and information flows and duplication of roles, resulting in inefficiency.
−	*'''No mandate to make the necessary changes i.e. No Business Process Charter.''' The Business Process charter defines the mandate for initiating improvement targets. It gives the process owners direction and approval for their initial focus on BPM improvements . These targets should tell the process owner in which areas the executives want to see improvements, e.g.:
−	**Standardize the budget process. i.e. “Reduce the fifteen different budget processes we currently have to one”.
−	**Increase the accuracy of the data entry inputs from 65% to 95%.
−	**Reduce the total cycle time from ordering to delivery from 18 hours to two hours
−	*'''No vision for the future.''' BPM should never be content with always delivering the ‘as-is’ processes. BPM that does not have a future vision of the every changing business will forever lag behind the business changes and hence deliver a much lower value than what is expected. At executive forums, the ROI will always be questioned.
−	*'''Lack of BPM Budget:''' As a resulting lack of budget in the BPM CoE only a percentage of the processes are converted from ‘as-is’ to ‘to-be’. As only those processes in ‘to-be’ state are a true representation of the business the organization is left in a state of permanent under delivery and under performance. The old way of doing things creeps back in and the result is a step forward but two steps backwards. Confusion is created and the results for an organization are self-limiting.
−	*'''Lack of clear rules for Participation in BPM within the organization:''' A clear lack of defined roles and responsibilities of who should work with BPM creates divisions and a lack of accountability and responsibility pervades the organization. This results in missed improvement targets and an organizations whose business processes stagnate, adding little value even in cases where much potential exists.
−	*'''Not enough skilled resources in the BPM CoE to fulfil the mandate:''' A lack of skilled resources such as business analysts available for each project. This results in a distinct lack of quality and cause major delays in projects such as ERP implementations that are reliant on Business Processes. This adds to project costs and untimely delays.
−	*'''Lack of benchmarking and Best Practice:''' No standard or point of reference guidelines have been set for business process modelling, orchestration, or optimization. This leads to significant variations in BPM quality and often results in having the record of the business processes in separate BPM repositories and tools that do not communicate with one another. This leads to a disjointed set of Business processes across the entire organization.
−	*'''BPM Governance:''' The cost and complexity of adhering to compliance requirements is a drain on resources, and a significant pain-point. In many cases, particularly where the compliance relates to maintaining BPM (e.g., in keeping process changes and the record of these changes updated), the BPM CoE support is needed to satisfy these requirements effectively. The requirements are the same across the enterprises, yet each line of business or department addresses them individually, and this is expensive. Furthermore, enterprises devote resources to compliance unnecessarily. Because the requirements are so complex, and their resources are limited, enterprises may not meet the requirements to the extent that they would wish.
−	*'''BPM Alignment:''' Although the IT "marketplace" may convey the impression that BPM is easy and simple, the reality is that BPM is not easy. The complexities of a BPM implementation have their roots in the architectural challenges (alignment across the layers Business, Application, and Technology) in building composite applications - these include orchestration of user interfaces, integration with systems of record, managing non-functional aspects such as transactional requirements, availability, governance, performance, and scalability, and so on. BPM development is certainly not easy and therefore the alignment of its construct into an enterprise can be seen as a major pain point. Additionally, the visibility of BPM solutions to end users makes this architectural alignment focus even more important.
−	*'''Performance Management:''' Performance management of business processes enables executives to be informed as significant events and trends occur in their businesses. It assists managers in aligning performance goals and identifies areas of opportunity and concern related to BPM investment and results. Current approaches to BPM performance management are cumbersome, inflexible, and only solve part of the problem. They do not extend from the organizational objectives down to the level of the individual manager or employee and they do not provide a link between business consulting and the systems required to monitor and manage BPM performance. As a result, employees do not work at optimal productivity, which negatively influences performance, employee satisfaction and reduces customer retention.
−	*'''Value Management:''' BPM value management is pursuit and stewardship of the anticipated benefits of processes that are of worth, importance, and significance to a specific stakeholder or group of stakeholders. In many organizations no relationship between BPM and value exists, because of this, the nature of BPM and its contribution to stakeholder value is not anticipated in the organizational strategy. This means that BPM investments that can otherwise improve the worth of the organization are isolated and have little or no influence on providing the means to achieve strategic ends. The final results is an organization that has little consideration for the way in which their information, service, and data flows operate and which people are involved in these aspects, leading to duplications of task, ineffectual data services, and poor information within reporting and measurements.
−	*'''BPM Maturity:''' BPM "maturity" relates to the degree of formality and optimization of process management. Many organizations only adopt a single view of BPM maturity; they consider only one of the following three possible maturities:
−	~~#Maturity in developing BPM solutions,~~
−	~~#Maturity in adopting BPM solutions, or~~
−	~~#Maturity of governance through BPM solutions.<br>~~
−	For organizations that take one of these narrow views, they are left at a disadvantage in their global competitiveness. Maturity cannot be considered in only one realm; it needs to have a holistic approach and hence the maturity against which BPM performance is measured needs the same perspective.
−	*'''Lack of an adequate change management approach within the BPM CoE.''' Managing change is tough, but part of the problem is that there is little agreement on what factors most influence transformation and innovation initiatives. Ask five executives to name the one factor critical for the success of these portfolios and you are likely to get five different answers. What is missing, we believe, is a focus on the hard factors. These factors bear three distinct characteristics:
−	~~#Organizations are able to measure the change in direct or indirect ways~~
−	~~#Organizations can easily communicate their importance, both within and outside organizations~~
−	~~#Businesses are capable of influencing those elements quickly<br>~~
−	~~Some of the hard factors that affect a transformation and innovation initiatives are:~~
−	*The time necessary to complete the initiative.
−	*The number of people required to execute it.
−	*The financial results that intended actions are expected to achieve.
−
−
−	~~=== What Happens Without Business Process Management? ===~~
−	What happens if an organization does not have a sound BPM CoE in place? Some of the symptoms attributed to organizations not properly analysing, selecting, and managing its BPM improvements are related to the process as described in Figure 1 below:
−
−
−	[[File:BPM Center of Excellence - Figure 1.png\|thumb\|800px\|left\|alt=Figure 1: Business Events driving business decisions through Business Process Management.\|Figure 1: Business Events driving business decisions through Business Process Management.]]
−
−
−	In figure 1, we see business events, business processes, and business decisions each as separate. By connecting them, through BPM, to a common view which is maintained and managed via BPM allows insight into the business events to be applied, through business decisions, to affect the business processes, and vice versa.
−
−	*'''Lack of business agility to react to business events:''' Events ranging from those that take place in the course of normal operation or which may occur as planned or unplanned occurrences that drive responses and processes internal to a business and result in a business decision. For example the introduction of Mobile technology as a service. Business Process Management applies designs to improve the detection, identification, and response to associated business events with efficiency and effectiveness.
−
−	<em>Why it is important:</em> The increasing speed of commerce is introducing more events per day, per minute, and per second for many businesses, increasing the backlog of challenges in the event queue. Hence efficient detection and response to just a fraction of these events can result in millions of dollars gained or saved per year. It makes sense that businesses are focusing on improving their performance in identifying events or event patterns, as well as generating the right response, at the right time, and for the right reason.
−
−	*'''Inability to implement Business Process Management technology:''' Business Process Management technologies have become cornerstone products for enterprise software vendors. BPM is solidly rooted as a core element of their product stack and continues to drive complementary software development, including B2B integration, content management, and decision-making. Without a BPM CoE that helps select the correct BPM technology suited to the organization and works to ensure that its implementation as part of the wider ERP implementation is effective leads to:
−	**Ineffective use of organization resources
−	**Inability to adjust with agility and flexibility to meet changing business requirements and customer expectations
−	**Inefficient response time to internal and external events
−	**Limiting the speed at which an organization can bring new products or services to market
−	**Reduction of customer satisfaction
−	**Reduction of competitive advantage and positioning
−
−	<em>Why it is important:</em> Consider a manufacturing organization that loses millions of dollars because of an underperforming logistics operation. When orders are unable to be shipped, the root cause may be lack of consistent and efficient processes that create challenges to compensate and adjust priorities, resources, and tasks.
−
−	High performing organizations invest in BPM approaches and technologies to better address business challenges that cause inefficiencies, lost revenue and lower customer satisfaction. Improving the way business processes are managed is a critical component for improving operational performance.
−
−	*'''Inability to assist decision-making:''' Decision Management helps organizations extract strategic decision-making logic from traditional programmed solutions into a central repository maintainable by business experts. It improves operational performance by facilitating faster time to market for decision making changes and enabling organizations to react better to market opportunities.
−
−	<em>Why it is important:</em> Staying competitive in a fast-moving market requires agility, flexibility, and precision. Decision-making has created value for organizations across many industries with diverse business challenges, and creates a decision-making platform allowing organizations to align business policies to market challenges and opportunities.
−
−	*Cross-functional, resource, and cause and effect challenges. This point highlights several areas where a poor or non-existent BPM CoE leads to business challenges in which the following symptoms exist:
−	**Project and functional managers often clash over scarce BPM resources.
−	**Priorities of BPM initiatives frequently change, with resources constantly reassigned.
−	**BPM initiatives begin as soon as approved by senior managers, irrespective of the resources availability.
−	**Even if the strategic BPM initiative is implemented, the organization frequently does not achieve the desired improvement, as it is not measured against a benchmark or baseline.
−	**There is no comprehensive document (BPM Charter) that links all of the organization's BPM undertakings to the strategic plan.
−	**The list of BPM initiatives is not properly prioritized. Therefore, it is presumed that all ideas should be implemented simultaneously.
−
−
−	~~'''Document''': [[Media:How to create and work within a BPM Center of Excellence.pdf\|Download the BPM Center of Excellence document]]~~
−
−	~~[[Category: Process Management and Process Optimization]]~~

← Older revision		Revision as of 09:38, 18 January 2017
Line 48:		Line 48:

	[[File:BPM Center of Excellence - Figure 1.png\|thumb\|800px\|left\|alt=Figure 1: Business Events driving business decisions through Business Process Management.\|Figure 1: Business Events driving business decisions through Business Process Management.]]		[[File:BPM Center of Excellence - Figure 1.png\|thumb\|800px\|left\|alt=Figure 1: Business Events driving business decisions through Business Process Management.\|Figure 1: Business Events driving business decisions through Business Process Management.]]
		+
		+
		+	In figure 1, we see business events, business processes, and business decisions each as separate. By connecting them, through BPM, to a common view which is maintained and managed via BPM allows insight into the business events to be applied, through business decisions, to affect the business processes, and vice versa.
		+
		+	*'''Lack of business agility to react to business events:''' Events ranging from those that take place in the course of normal operation or which may occur as planned or unplanned occurrences that drive responses and processes internal to a business and result in a business decision. For example the introduction of Mobile technology as a service. Business Process Management applies designs to improve the detection, identification, and response to associated business events with efficiency and effectiveness.
		+
		+	<em>Why it is important:</em> The increasing speed of commerce is introducing more events per day, per minute, and per second for many businesses, increasing the backlog of challenges in the event queue. Hence efficient detection and response to just a fraction of these events can result in millions of dollars gained or saved per year. It makes sense that businesses are focusing on improving their performance in identifying events or event patterns, as well as generating the right response, at the right time, and for the right reason.
		+
		+	*'''Inability to implement Business Process Management technology:''' Business Process Management technologies have become cornerstone products for enterprise software vendors. BPM is solidly rooted as a core element of their product stack and continues to drive complementary software development, including B2B integration, content management, and decision-making. Without a BPM CoE that helps select the correct BPM technology suited to the organization and works to ensure that its implementation as part of the wider ERP implementation is effective leads to:
		+	**Ineffective use of organization resources
		+	**Inability to adjust with agility and flexibility to meet changing business requirements and customer expectations
		+	**Inefficient response time to internal and external events
		+	**Limiting the speed at which an organization can bring new products or services to market
		+	**Reduction of customer satisfaction
		+	**Reduction of competitive advantage and positioning
		+
		+	<em>Why it is important:</em> Consider a manufacturing organization that loses millions of dollars because of an underperforming logistics operation. When orders are unable to be shipped, the root cause may be lack of consistent and efficient processes that create challenges to compensate and adjust priorities, resources, and tasks.
		+
		+	High performing organizations invest in BPM approaches and technologies to better address business challenges that cause inefficiencies, lost revenue and lower customer satisfaction. Improving the way business processes are managed is a critical component for improving operational performance.
		+
		+	*'''Inability to assist decision-making:''' Decision Management helps organizations extract strategic decision-making logic from traditional programmed solutions into a central repository maintainable by business experts. It improves operational performance by facilitating faster time to market for decision making changes and enabling organizations to react better to market opportunities.
		+
		+	<em>Why it is important:</em> Staying competitive in a fast-moving market requires agility, flexibility, and precision. Decision-making has created value for organizations across many industries with diverse business challenges, and creates a decision-making platform allowing organizations to align business policies to market challenges and opportunities.
		+
		+	*Cross-functional, resource, and cause and effect challenges. This point highlights several areas where a poor or non-existent BPM CoE leads to business challenges in which the following symptoms exist:
		+	**Project and functional managers often clash over scarce BPM resources.
		+	**Priorities of BPM initiatives frequently change, with resources constantly reassigned.
		+	**BPM initiatives begin as soon as approved by senior managers, irrespective of the resources availability.
		+	**Even if the strategic BPM initiative is implemented, the organization frequently does not achieve the desired improvement, as it is not measured against a benchmark or baseline.
		+	**There is no comprehensive document (BPM Charter) that links all of the organization's BPM undertakings to the strategic plan.
		+	**The list of BPM initiatives is not properly prioritized. Therefore, it is presumed that all ideas should be implemented simultaneously.

← Older revision		Revision as of 09:35, 18 January 2017
Line 9:		Line 9:

	The BPM CoE acts as both the initiation point and the organization’s custodian and point of accountability of its processes, tasked with ensuring sustainability, maturity, governance, alignment, as well as the measurements, reporting, templates, and artifacts that makes BPM successful.		The BPM CoE acts as both the initiation point and the organization’s custodian and point of accountability of its processes, tasked with ensuring sustainability, maturity, governance, alignment, as well as the measurements, reporting, templates, and artifacts that makes BPM successful.
		+
		+
		+	=== The Challenge BPM CoE Faces ===
		+	For most organizations, a number of pain points with respect to implementing and sustaining a successful BPM CoE exist. As they do this, they need to be aware of what happens when a BPM CoE is not in place to guide and govern the overall BPM. For the executive the reasons as well as the consequences of not implementing a successful and ongoing BPM within their organization are important for executives to understand.
		+
		+	*'''Not managing the processes across all areas.''' Within the organization, only some of the parts have completed detailed process mapping, orchestration, and optimization. This leaves process integration across the entire enterprise structure disjointed as unmanaged, a process will simply stop at the end of a department, line of business, or other business unit’s logical boundary. The result is the hampering of service and information flows and duplication of roles, resulting in inefficiency.
		+	*'''No mandate to make the necessary changes i.e. No Business Process Charter.''' The Business Process charter defines the mandate for initiating improvement targets. It gives the process owners direction and approval for their initial focus on BPM improvements . These targets should tell the process owner in which areas the executives want to see improvements, e.g.:
		+	**Standardize the budget process. i.e. “Reduce the fifteen different budget processes we currently have to one”.
		+	**Increase the accuracy of the data entry inputs from 65% to 95%.
		+	**Reduce the total cycle time from ordering to delivery from 18 hours to two hours
		+	*'''No vision for the future.''' BPM should never be content with always delivering the ‘as-is’ processes. BPM that does not have a future vision of the every changing business will forever lag behind the business changes and hence deliver a much lower value than what is expected. At executive forums, the ROI will always be questioned.
		+	*'''Lack of BPM Budget:''' As a resulting lack of budget in the BPM CoE only a percentage of the processes are converted from ‘as-is’ to ‘to-be’. As only those processes in ‘to-be’ state are a true representation of the business the organization is left in a state of permanent under delivery and under performance. The old way of doing things creeps back in and the result is a step forward but two steps backwards. Confusion is created and the results for an organization are self-limiting.
		+	*'''Lack of clear rules for Participation in BPM within the organization:''' A clear lack of defined roles and responsibilities of who should work with BPM creates divisions and a lack of accountability and responsibility pervades the organization. This results in missed improvement targets and an organizations whose business processes stagnate, adding little value even in cases where much potential exists.
		+	*'''Not enough skilled resources in the BPM CoE to fulfil the mandate:''' A lack of skilled resources such as business analysts available for each project. This results in a distinct lack of quality and cause major delays in projects such as ERP implementations that are reliant on Business Processes. This adds to project costs and untimely delays.
		+	*'''Lack of benchmarking and Best Practice:''' No standard or point of reference guidelines have been set for business process modelling, orchestration, or optimization. This leads to significant variations in BPM quality and often results in having the record of the business processes in separate BPM repositories and tools that do not communicate with one another. This leads to a disjointed set of Business processes across the entire organization.
		+	*'''BPM Governance:''' The cost and complexity of adhering to compliance requirements is a drain on resources, and a significant pain-point. In many cases, particularly where the compliance relates to maintaining BPM (e.g., in keeping process changes and the record of these changes updated), the BPM CoE support is needed to satisfy these requirements effectively. The requirements are the same across the enterprises, yet each line of business or department addresses them individually, and this is expensive. Furthermore, enterprises devote resources to compliance unnecessarily. Because the requirements are so complex, and their resources are limited, enterprises may not meet the requirements to the extent that they would wish.
		+	*'''BPM Alignment:''' Although the IT "marketplace" may convey the impression that BPM is easy and simple, the reality is that BPM is not easy. The complexities of a BPM implementation have their roots in the architectural challenges (alignment across the layers Business, Application, and Technology) in building composite applications - these include orchestration of user interfaces, integration with systems of record, managing non-functional aspects such as transactional requirements, availability, governance, performance, and scalability, and so on. BPM development is certainly not easy and therefore the alignment of its construct into an enterprise can be seen as a major pain point. Additionally, the visibility of BPM solutions to end users makes this architectural alignment focus even more important.
		+	*'''Performance Management:''' Performance management of business processes enables executives to be informed as significant events and trends occur in their businesses. It assists managers in aligning performance goals and identifies areas of opportunity and concern related to BPM investment and results. Current approaches to BPM performance management are cumbersome, inflexible, and only solve part of the problem. They do not extend from the organizational objectives down to the level of the individual manager or employee and they do not provide a link between business consulting and the systems required to monitor and manage BPM performance. As a result, employees do not work at optimal productivity, which negatively influences performance, employee satisfaction and reduces customer retention.
		+	*'''Value Management:''' BPM value management is pursuit and stewardship of the anticipated benefits of processes that are of worth, importance, and significance to a specific stakeholder or group of stakeholders. In many organizations no relationship between BPM and value exists, because of this, the nature of BPM and its contribution to stakeholder value is not anticipated in the organizational strategy. This means that BPM investments that can otherwise improve the worth of the organization are isolated and have little or no influence on providing the means to achieve strategic ends. The final results is an organization that has little consideration for the way in which their information, service, and data flows operate and which people are involved in these aspects, leading to duplications of task, ineffectual data services, and poor information within reporting and measurements.
		+	*'''BPM Maturity:''' BPM "maturity" relates to the degree of formality and optimization of process management. Many organizations only adopt a single view of BPM maturity; they consider only one of the following three possible maturities:
		+	#Maturity in developing BPM solutions,
		+	#Maturity in adopting BPM solutions, or
		+	#Maturity of governance through BPM solutions.<br>
		+	For organizations that take one of these narrow views, they are left at a disadvantage in their global competitiveness. Maturity cannot be considered in only one realm; it needs to have a holistic approach and hence the maturity against which BPM performance is measured needs the same perspective.
		+	*'''Lack of an adequate change management approach within the BPM CoE.''' Managing change is tough, but part of the problem is that there is little agreement on what factors most influence transformation and innovation initiatives. Ask five executives to name the one factor critical for the success of these portfolios and you are likely to get five different answers. What is missing, we believe, is a focus on the hard factors. These factors bear three distinct characteristics:
		+	#Organizations are able to measure the change in direct or indirect ways
		+	#Organizations can easily communicate their importance, both within and outside organizations
		+	#Businesses are capable of influencing those elements quickly<br>
		+	Some of the hard factors that affect a transformation and innovation initiatives are:
		+	*The time necessary to complete the initiative.
		+	*The number of people required to execute it.
		+	*The financial results that intended actions are expected to achieve.
		+
		+
		+	=== What Happens Without Business Process Management? ===
		+	What happens if an organization does not have a sound BPM CoE in place? Some of the symptoms attributed to organizations not properly analysing, selecting, and managing its BPM improvements are related to the process as described in Figure 1 below:
		+
		+
		+	[[File:BPM Center of Excellence - Figure 1.png\|thumb\|800px\|left\|alt=Figure 1: Business Events driving business decisions through Business Process Management.\|Figure 1: Business Events driving business decisions through Business Process Management.]]

@@ Line 9: / Line 9: @@
 The BPM CoE acts as both the initiation point and the organization’s custodian and point of accountability of its processes, tasked with ensuring sustainability, maturity, governance, alignment, as well as the measurements, reporting, templates, and artifacts that makes BPM successful.
 '''Document''': [[Media:How to create and work within a BPM Center of Excellence.pdf|Download the BPM Center of Excellence document]]
-[[Category: BPM Concepts & Method Knowledge]]
+[[Category: Process Management and Process Optimization]]