002 BusinessPerformance Brazil Michael Wheeler

We make strategy operational.

Command and Control for Business PerformanceAn IDS-Scheer Perspective

www.ids-scheer.com

An IDS Scheer Perspective

Where are executives focused?

CEO

R kTop 10 Business R kTop 10 Business

CIO

2Attracting and retaining new

1Business process improvement

Rankop 0 us essPriorities

2Attracting and retaining new

1Business process improvement

Rankop 0 us essPriorities

4Expanding into new markets or hi

3Creating new products and services (innovation)

2tt act g a d eta g ecustomers

4Expanding into new markets or hi

3Creating new products and services (innovation)

2tt act g a d eta g ecustomers

6Improving enterprise workforce effectiveness

5Reducing enterprise costs

geographies

6Improving enterprise workforce effectiveness

5Reducing enterprise costs

geographies

8Increasing the use of information and analytics

7Expanding current customer relationships

8Increasing the use of information and analytics

7Expanding current customer relationships

10Acquiring new companies and capabilities (mergers and acquisitions)

9Targeting customers and markets more effectively

10Acquiring new companies and capabilities (mergers and acquisitions)

9Targeting customers and markets more effectively

© IDS Scheer AG www.ids-scheer.com 2

Source: Gartner EXP (January 2008)

Questions for the operations management team

1. Have you identified the core processes that drive business operations?

2. Have you established a master repository of all your process intelligence?g

3. Can you associate a process with its effect on Key Performance Indicators?

4 Can you measure process execution on demand?4. Can you measure process execution on-demand?

5. Does each process have an accountable owner-of-record?p

6. Is enterprise-level continuous process improvement within your reach?Process Excellence Operational Excellence Business PerformanceProcess Excellence Operational Excellence Business Performance


Process Excellence Operational Excellence Business PerformanceProcess Excellence Operational Excellence Business Performance

Do Process + Structure = Business Performance?

Is there a link between share performance and the use of structured business improvement approaches using process frameworks such as SCOR?improvement approaches using process frameworks such as SCOR?

Hi h l tHigher value over term

Less decline over the past three months

SCOR I dSCOR Index

S&P

DJI


Business Performance starts with the foundation.

ValuationShare Price

G

Business Strategy

Top Line Growth

Operational Strategy

Operational Execution

People Processes Technology


2/3 of the foundation is impacted by outside forces.

ValuationShare Price

G

Business Strategy

Top Line Growth

Operational Strategy

Operations

Time in Job1 in 4 on job <1 yr1 in 2 on job <5 yrs

Non-native workers14.8% in 2005

PeopleProcesses

Enabler rather than coreHidden costs

Rolling refresh cyclesDisruptive by design

Technology


U.S. Department of LaborBureau of Labor Statistics

15.3% in 200623.5M workers

Offshoring

Disruptive by designOutsourcing

Process represents the corporate memory and is the only element in the business foundationis the only element in the business foundation that is 100% under management’s control.


Predictable business performance is an outcome of consistently

Perspective

Predictable business performance is an outcome of consistently leveraging information through structured processes that are executed the same way over and over again.

1 Persistent1 Persistent

Input

How is it used?1. Repeatable2 Technology AgnosticOptimal Processes

What is used?1. Persistent2. Available3. Quality Assured

Accurate Information

How is it used?1. Repeatable2 Technology AgnosticOptimal Processes

What is used?1. Persistent2. Available3. Quality Assured

Accurate Information

How well is it used?1. Predictable2. Efficient

Flawless Execution

How is it used?2. Technology Agnostic3. Measurable

Optimal Processes

How well is it used?1. Predictable2. Efficient

Flawless Execution

How is it used?2. Technology Agnostic3. Measurable

Optimal Processes

1. Operationally effective1. Operationally effective

Output


2. Continuously improved3. Predictable results

Business Performance 2. Continuously improved3. Predictable results

Business Performance

BPM and a Master Process Repository drive predictability and repeatability into work processes and operations

OptimalProcesses

AccurateInformation

FlawlessExecution

Business Objective

MDM CPM/PPMGovernance BAMBPMMDM CPM/PPMGovernance Method BAM

Master Process Repository

Master Data Repository

Performance Dashboards

Governance Technology


The Master Process Repository is the hub for continuous improvement and technology independence

Provides a context for how the business operatesInterdependencies of processesAccountabilityCause & Effect

Drives technology independenceDecouples “how” the business operates from “what” it operates onSustains operational predictability through technology cycles

Delivers efficienciesCreates persistent processes across the enterpriseProvides analytics to uncover under- or unutilized processes


Enables accurate costing of (operational) processes

How do you start?


A Master Process Repository is defined and populated with customer-specific operational process models.

Enterprise-wide persistency and consistencyProvides context & cause/effect relationships between processesEnsures quality & predictability of execution

Finance

MasterProcess

GraphicsDocumentsKPI’s

SupplyChain

ProcessRepository

Org StructuresAccountability MapsProcess Costing

ProductDev

InformationTechnology


The repository then becomes the strategic asset that supports multiple enterprise-wide use cases.

Provides audit documentation and historiesEnables views of business “as-executed”

Cost Analysis

Invest once-leverage widelyGovernance

Cost Analysis

Enterprise BPM

OperationalFinance

MasterProcess

pMeasurement

EnterpriseArchitecture

SupplyChain

GraphicsDocumentsKPI’s

Use CasesProcessRepository Vendor

Selection

SLA

ProductDev

Org StructuresAccountability MapsProcess Costing

Use Cases

Management

Compliance

InformationTechnology


ContinuousImprovement

How does ARIS help?


Holistic BPM with ARIS

BPM organizationWho?

Procedure modelVia?

BPM

ARIS Value EngineeringCompany-specificp y p

Integrated methodHow?

TechnologyWith?

Objectives / StrategyWhy?

Integrated method Technology Objectives / Strategy

Architecture of integrated Company-specific


Architecture of integratedinformation systems

Company specific

ARIS Business Performance Edition

ARIS – Boosting Business gProcess Performance>> Improve business process performance and transparency through integrated business intelligence and process intelligence <<process intelligence. <<

ARIS – Improving BusinessARIS Improving Business Through IT>> Increase corporate success and protect your investment through efficient and innovative business processes backed by profitable deployment of IT. <<

ARIS Ensuring BusinessARIS – Ensuring Business Compliance>> Leverage efficient, process-based risk and compliance management for reliable control and enforcement. <<


a age e t o e ab e co t o a d e o ce e t

ARIS Platform

ARIS Process Performance ManagerARIS Process Event MonitorARIS P f D hb d

ARIS BSCARIS Six SigmaARIS B i O ti iARIS Performance Dashboard

ARIS Risk & Compliance Manager…

ARIS Business OptimizerARIS Business Simulator…

ARIS Business Architect for SAPARIS SOA ArchitectARIS Business Rules Designer

ARIS Business ArchitectARIS Business DesignerARIS Business Publisher


gARIS BI Modeler…

ARIS IT ArchitectARIS IT Inventory…

Visibility and Alignment enable command & controlVisibility

Linking processes to the KPIs they support make y ppimpact highly apparent

AlignmentgBusiness strategy to Operational Execution

CommandAutomated monitoring & alerts drive constant oversight and incident avoidance

ControlRapid assignment of accountability and integration to modeling tools


integration to modeling tools reduces time-to-solution

Perspective

Effective measurement and management of business processes provides the foundation for operational excellence

1. Discovery of existing processes2 Assessment of process value and performance2. Assessment of process value and performance3. Management and improvement of the process

Focus on the HOW, not the WHERE!


Focus on the HOW, not the WHERE!

Process DiscoveryAS-Documented Process AS-Executed Process

CustomerRequest

0.50 Day(s)Raise

CustomerOrder

Order beingprocessed

0.50 Day(s)

Job

0.50 Day(s)

Term PointCSPC Wideband

FrontOffice

InformSales

SE CaptureOrder

Routenot

investigated

New quoterequestfrom PM

New quoterequest fromcustomer

Requirementgeneratedas result of

capacityLinks PM Plans

Customer Requirements& SE Capture Order

Responsefiled

Dead end

CRF completedand

Links SE CaptureOrder & Issuer

Enter Order

IssuerEnter Order

Validation jobgenerated onCMC

Pass Missinginformation

to Issuer

Links SE Resolves& Issuer Enters Order

NJRA closed

Missinginformation

request (Issuer)

Links Issuer Enter

Input from Account Team

Receivecustomer

plans

Decide no neworders required

Dead end

Decide to placeorder with

tactical planner

Links PM plansCustomer Reqs &Tactical Planning

SEResolves

PM PlansCustomer

Requirements

SE AnalyseD l

Route not investigated

Delay enquiryfrom customer

Links JC analysedelay & SE

d tProgress update

t SE

SE respondto Customer

Dead end

Links JC analysedelay & WBP

601 Task

INAC tasklive

Dead end - routenot investigated

Progress infopassed to WBP

TacticalPlanning

Links Supervise contract& Tactical Planning

RFs sent toCSP Contracts

RF's sent forFinancial

authorisation

Out of Scope - not Modelled

Supervise

Links DetailedPlanning

& Supervise Contract

DL proact jobon queue

Ready forinstallation

Links Supervise Contract& COW supervise

External Works

DetailedPlanning

PM reportsProject Status

Account Teaminforms

Manager ofmajor project

Customerrequest (major

project)

Managerinformed

of major projectfrom other

SDH PMnot required

(End)

Form sent from Oswestry Capacity Managment

SDH23received

Control

NJRA

Term pointAllocationcomplete

CustomerSDH and Parenting

identified

Term PointAllocation

A601

4.00 Day(s)Identification

of CoreNetwork Capacity

0534

2.00 Day(s)Identificationof Customer

SDH and Parenting0532

Job ControlInitiated

Routing andAssignment of

CSPC WidebandPlanner

NetworkSolutionDesign


CMC queue

Links Issuer EnterOrder & JC Order

Validation

NJRA closed

Links Issuer EntersOrder & NTE Task

Links Issuer EnterOrder & SE

Resolves

601 task toWideband

planner

Links Issuer EnterOrder & Search

for Y Code

JC order

Missinginformation

request (JC)

Links chase missinginfo & order validation

Missinginformation

received (JC)

Links Issuer chasemissing info & JCOrder Validation

Links JC OrderValidation & NTE

allocation

NJRAclosed

Re-Issue601 Taskto WBP

Links JC OrderVal idation &

Search for Y Code

NTE Tasks(129/532)

London/Glasgow

Y CodeSearchSlough/London

Links Search for YCode & Q Mgr

selects NTE TaskA29/O532/O530

New job inqueue

Links Search for YCode & NTE Task

New Job inqueue

Links Issuer chasemissing info &

WBP Site Survey

Missinginfo received

WBPSite Survey

SE refer

Link to internal/external workgroups - not

modelled

Info sent tointernal/external

workpacks

Links WBP SiteSurvey & SE Refer

Costing toCustomer

Anci llary costinfo to SE

Links WBP SiteSurvey & Issue

RF's & JC Respondto CREP

154 atCOM

Job delayed

Links WBP Site Survey& JC Analyse Delay

NSD Route

JC AnalyseDelay

Delay

Links SE analyse delay& JC analyse delay

Progressrequestto JC(SE)

responds toCustomer

to SE


Progress infopassed to NSD


Progress infopassed to PM


Progress infopassed to CSM

Proact jobcomplete Not modelled

Links toExternal Works

carrying out DL works

IM Facili tiesDecisions

Requiresfurther

Investigation

IM Plan Sitesfor Capacity

Issuer chasesmissing info

Links WBP Site Survey &Issuer chase missing Info

Missinginformation

request (WBP)

SolutionPlanning

Budget

Links NTE Tasks (No Y Code)& JC Analyse Delay

Order in JobController's

Queue (Link)

NSD Q Managerchase missinginfo/clean data

Glasgow

Links WBP Site Survey& NSD Job Selection & Clean

010/O534l ive (Link)

Job assignedto NSD (Link)

Links NSD Job Selection/Clean& NSD Route /Assign

Relevant NSDinformed of newproj order (Link)

Links Queue Manager selects NTE& Route/Assign Glasgow

154 Tasklive (Link)

Links NTE Tasks& WBP Site Survey

Links WBP Site Survey& Issue RF's Glasgow

SDH2C formsent to NSD

(Link)

Missinginformation

passed to NSD(End)

Route not investigated

INJCin JCs

queue (Link)

Links NSD Job selection/Clean& JC Analyse delay

Links Issuer chase missing info& WBP Site survey &WI

Missinginformationnot available

(WBP)

Job returnedto queue man

(Link)

Requiresfurther

Investigation

Requiresfurther

Investigation

Requiresfurther

Investigation

Customer

OrderRequirements

Reviewed

0.50 Day(s)Determine

ServiceDelivery Date

CREP

CallCustomer

CALL

0.50 Day(s)

Review OrderRequirements

0680

ServiceDelivery Date

Determined

Assignment ofCircuit Complete

CSPC

FrontOffice

CWPC

Costing toCustomer

Issue RFsGlasgow/London

JC Respondto CREP

Links refer costingto customer &cancel order

Order

Customerconfirm

information toWideband

Links SE refercostings to customer& WBP Site Survey

Cancelorder

End

Ready toCREP

Links NSDRoute/Assign& JC Respond

to CREP

Task called toissuer

Issuer choosesto ignore so not

modelled

Links JC respondsto CREP & Issue

RF's Glasgow

CREPcomplete

Al locate CoWLondon /Sheffield

Ready forinstallation

Links Allocate COW &COW supervise external works

Supervise

Schemeinstalled &

commisioned

Links Supervise External /Contractor& Integrate Schemes

Input not Modelled

Incomingcall from field

engineer

Links Route/Assign& JC Analyse delay

INJCin JCs

queue (Link)

Links Issue RF Glasgow& Allocate COW

198/O912complete

RF prepared(Link)

Links Issue RF's& Route & Assign

( )

Links Route/Assign& Queue Manager Chases missing details

Company

CoreNetwork

Built

CustomerCall

Complete

ServiceConfiguration

Complete

14.00 Day(s)BuildCore

Network0630

3.00 Day(s)

ConfigureService

CONF

0.50 Day(s)Report

Service OrderComplete

WNEX


NOU

CWPC

Equipmentnot delivered

Not Model led at Present- Non Fluid Process

& Integrate Schemes

IntegrateSchemes

CONFLive

Links Integrate Schemes& Configure Circuit/Resolve Problems

Link notModelled/investigated

Schemereferred to

NSD

Schemereferred to

CSP

Integrate scheme andTactical planning eEPCs

Configure CircuitResolve

Problems

WNEXlive after

WNEX task is triggered byCOSMOSS, once all othertasks have been completed

End ofProcess

Capacityproblemraised

Links Supervise External Works/Contractor& IM facili ties decisions

Route, Assign& config 2Mbit

Circuits

JC amend CDD

Feed into COSMOSSstatistics - Dead end

CDDamended

CDD can't Feed into COSMOSSstatistics - dead end

R&A taskcom'd

Link to COSMOSSglue and Config circuit

Other outputtbc

Service providers

Project managers

ARISmodelers

Project administrators

1.00 Day(s)

Handover Serviceto Customer

HAND

0.50 Day(s)Service

CompletionMonitor

COMP

ServiceCompletion

being Monitored

HandoverComplete

ServiceCompletion

Reported

FrontOffice

CWPC

TimesCostsQuantities+


Processowners

Methodconsultants

System administrators Risks

Chances+

Strategic Measurement and Assessment

Current sales performance


Tactical, Actionable Information

U iU iWhy Uncoveringprocess behavior

patterns

Uncoveringprocess behavior

patterns

Why

AS-ISProcesses !!

AS-ISProcesses !!

MonitoringPerformanceMonitoring

PerformanceHow

PerformanceIndicators

automatically

PerformanceIndicators

automatically


What

Operational Root Cause Analysis of Performance Weakness


Perspective

Corner office command-and-control of the operational strategyprovides the Operational Executive his best weapon for proactively driving key corporate indicatorsproactively driving key corporate indicators.

Command: On-demand visibility into performance of key indicatorsy p yControl: Immediate assignment of accountability

Focus on the HOW not on the WHERE!


With Visibility Comes Accountability

Best CaseRegion A

Spotlight Effecton activity level

Worst CaseRegion BRegion A on activity level Region B

Performance gapsPerformance gapsdetected in benchmarking

Process defectsidentified in aggregated process flow

Best Practicewith lean process flow


identified in aggregated process flowwith lean process flow

A framework for accountabilityforms the basis for process

performance and performanceperformance and performanceconformance


Process Performance Management

On Demand Measurement and Analysis

Process Intelligence + Process Monitoring + Process Modeling = Process Performance Management

On Demand Measurement and Analysis of actual running processes

Automated collection Process Monitoring Process Modeling

Always-on monitoring

Early Detection of anomalies

Alerting1

23

12

3Alerting

Root-Cause Analysis

45

67

45

67

89tim

e8

9time

Process Intelligence

P P f M t


Process Performance Management

Performance measurement closes the control loop

Ability to sense and respond early improves ability to correct-with-effect

Monitoring of operational key indicators as early warning systems to d cato s as ea y a g syste s topotentially damaging deviations from targets

Persistent monitoring via automation

On demand…

Reports

Dashboards

Analytics


How do we establish performance assurance and process

governance?governance?


ARIS Solutions


ARIS Business Performance Edition

ARIS – Boosting Business gProcess Performance>> Improve business process performance and transparency through integrated business intelligence and process intelligence <<process intelligence. <<

ARIS – Improving BusinessARIS Improving Business Through IT>> Increase corporate success and protect your investment through efficient and innovative business processes backed by profitable deployment of IT. <<

ARIS Ensuring BusinessARIS – Ensuring Business Compliance>> Leverage efficient, process-based risk and compliance management for reliable control and enforcement. <<


a age e t o e ab e co t o a d e o ce e t

We Make Strategy Operational

SSStrategyStrategy

Valuation

Op

Command & Control

Op

Command & Control

Valuation

Shareholder Value

Top-Line Growthperationsperations


002 BusinessPerformance Brazil Michael Wheeler

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Transcript of 002 BusinessPerformance Brazil Michael Wheeler