This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved.

Janelle Hill

Advancing Beyond The Early Stages of BPM Maturity

Agenda

• Overview of Gartner's ITScore for Business

Process Management (aka BPM Maturity Model).

• Split into workgroups based on shared interests.

Brainstorm on critical dimensions that

advance/inhibit maturity.

• Share findings with all attendees.

• Summary and action plan.

Distinguishing Gartner's Five Levels of BPM Maturity

Progression

Level 1

Operational performance results are

subpar.

Fundamental change,

through a focus on

process, is explored.

Process-Aware

Ability to capitalize on

market dynamics is

subpar.

Optimization technology is

used to optimize business results across

processes.

Level 5 Optimized Processes

Best practices don't exist;

work is performed

inconsistently.

Automation introduced to

increase control.

Level 2 Coordinated Processes

Process and application

silos dominate.

Exceptions, lost time and

poor data are rampant.

Focus shifts to closing the gaps

across the silos.

Level 3

Cross-Boundary Process Mgmt.

Strategy-to-execution

links do not exist.

Advanced BPM

technologies are

introduced to create this

linkage.

Level 4 Goal-Driven Processes

“Before”

“After”

Investments in Six Dimensions Advance BPM Maturity

• Organization and culture

• Process competencies

• Methodologies

• Technology and architecture

• Metrics and measures

• Governance

Push When Ready

ITScore for BPM Maturity: Investment Guidelines by Critical Dimension

Level 1 Process-Aware

Level 2 Coordinated

Process

Level 3 Cross-Boundary Process Mgmt

Level 4 Goal-Driven Processes

Level 5 Optimized Processes

Organization & Culture

Critical

Dimensions

= Critical transition point

Key:

High Low Medium

= Investment level

Process Competencies

Methodologies

Technology &

Architecture

Metrics & Measures

Governance

The Maturity Model Assesses Key Capabilities Across Six Dimensions

Organization

and Culture

How formal are process-centric roles and responsibilities ?

Is there a formal Business Process Competency Center (BPCC)?

Do the collective values and beliefs reflect process-related attitudes and behaviors?

Process

Competencies

To what extent are process skills (e.g., modeling, analysis, measurement, simulation, coaching and team building) absent/ present ?

Methodologies Are there repeatable frameworks that deliver a sound, comprehensive and consistent approach and specific deliverables from project to project ? (e.g., Six Sigma, Lean, Kaizen, Balanced Scorecard and value chain analysis, BPM – custom)

Technology and

Architecture

What technologies and architectures exist to support process improvement competencies and projects? Are they aligned to the BPM vision?

Metrics and

Measures

Do process performance metrics (that optimize enterprise rather than functional unit performance) exist? Are they benchmarked, with targets established and measured regularly?

Governance

Do processes, policies and forums exist to prioritize process improvement initiatives and govern process optimization decisions, increase transparency, reward actions and recognize leadership in process change?

Workshop Exercise

• Break into interest groups based on dimension – 5 Min’s

- Select a spokesperson and scribe

• Identify Your Challenges (5 min per person)

- Each participant should introduce themselves and their role

- Each participant should discuss their current situation relative to the dimension for their enterprise. What aspect of this dimension inhibits your BPM project or program from advancing?

• Group brainstorming (25 min.)

- Jointly develop recommendations for next steps

- Capture recommendations on your flip chart

• Spokesperson for table will share results with all (25 min.)

Current

Future

Take Gartner’s BPM Assessment: Use Your ITScore Report for Planning Your Next Steps

Organization and Culture

Process

Competencies

Methodologies

Technology and Architecture

Metrics and

Measures

Governance

5

4

3

2

1

Based on your responses, your role maturity is: Level 2: Coordinated Process

Plot Your BPM Maturity Journey

Level 1 Process-Aware

Level 2 Coordinated

Process

Level 3 Cross-Boundary Process Mgmt.

Level 4 Goal-Driven Processes

Level 5 Optimized Processes

Acknowledge operational challenges

Document and analyze business

processes

Monitor PPIs and adjust for

effectiveness

Automation of routine activities

Champion role emerges

Process owners and governance

structures established

Fully functioning

BPCC

Measure, monitor and

adjust operational

processes in real time

Public reputation for

process excellence

Process hierarchy in place, aligned to

goals

Advanced technologies in use to balance

conflicting goals

= Key milestones for our company = Our planned maturity journey

Organization and

Culture

Dimensions

Process Competencies

Methodologies

Technology and

Architecture

Metrics and Measures

Governance

Action Plan for BPM Leaders

Monday Morning

• Assess your current state using Gartner's ITScore for the BPM diagnostic tool.

• Review the improvement goals for existing process improvement projects in light of your self-assessment. Reprioritize projects as appropriate.

Next 90 Days

• Share your assessment with key stakeholders. Engage in a discussion about Gartner's assessment.

• Initiate a key BPM project that is "guaranteed" to deliver business value, advance maturity and thus generate excitement for the approach.

Next 12 Months

• Plan your action steps to demonstrate the business value of BPM and reach your maturity goals.

Related Gartner Research

ITScore Overview for Business Process Management Janelle Hill, Jim Sinur (G00205169)

Toolkit: Building a Business Process Competency Center Elise Olding, John Dixon (G00175496)

Align BPM to Strategy by Targeting and Measuring High-Value Processes Bill Rosser, Michael Smith (G00168431)

How to Make Process Ownership Work Bill Rosser, John Dixon (G00201193)

Toolkit: First 100 Days of the BP Director Elise Olding (G00206468)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

Appendix

11

Advancing From Process Aware (1) to Coordinated Processes (2)

Champion process thinking

Organization and

Culture

Champion process thinking by discussing what BPM could do for your company. Provide educational sessions, create a recommended reading list, find and share case studies. Find other enthusiasts.

Process

Competencies

Identify BPM leadership team needs and possible education sources based on your 12-month goals. Hire "Gold" skills first. Enlist HR to help identify the pockets of skills that likely exist in your organization.

Methodologies Focus on process discovery, process modeling and value chain assessment. Use rudimentary or paper-based methods (such as observations, interviews and drawings/printouts from graphics tools).

Technology and

Architecture

Identify current technologies used to support your initial process improvement project. Identify duplicated and redundant functionality and gaps in automation. Begin with simple and high-level models that business roles can understand.

Metrics and

Measures

Collect just enough data to establish the need for more focus on process, and not just functions. Use data to prove that problems exist.

Governance

Nothing formal needed yet.

Advancing From Coordinated Processes (2) to Cross-Boundary Process Mgmt. (3)

Organization and

Culture

Create a process hierarchy model that depicts your enterprise view of the four to 10 end-to-end processes that your company must execute to deliver its mission. Use it to communicate resource dependencies. Establish importance of business architecture work. Formalize the BPCC.

Process

Competencies

Document the mission of the BPCC and establish the list of process competencies needed. Begin to source these skills. Expand to include coaching, change management and communication skills.

Methodologies Create a BPM framework, including methods to support all phases of the process improvement. Begin to fill your own methodology toolbox.

Technology and

Architecture

Select BPM technologies as appropriate to your project plans and needs. Publish guidelines on when to use BPM-enabling technologies to support explicit process management needs.

Metrics and

Measures

For two or three processes, define a process performance metric that optimizes enterprise (rather than functional unit) performance.

Establish your baseline and establish a performance target. Begin measuring.

Governance

Graphically model your approach to process governance. Define decision guidelines for process owners and vet with functional executives.

Formalize your BPM program

Advancing From Cross-Boundary Process Mgmt. (3) to Goal-Driven Processes (4)

Organization and

Culture

Establish a rotational approach to process ownership for cross-functional processes. SMEs should rotate into BPCC to work on projects.

Process

Competencies

Skills transfer has started from BPCC to employees. A rotational approach is in place to further socialize process skills. Simulation and optimization skills are acquired.

Methodologies Simulation techniques are used in the strategic planning cycle now, with the process view and current performance levels providing input that influences the strategy going forward.

Technology and

Architecture

Match technology investments to process management needs; not every process requires explicit management. Not every process needs to be goal-driven. Establish tighter guidelines to map technologies appropriate to desired maturity level.

Metrics and

Measures

Use scenario simulations to balance incompatible performance objectives and come to an acceptable, realistic compromise.

Governance

Publish a responsible, accountable, consulted, informed (RACI) model for the governance process for reference by all stakeholders.

Avoid overselling BPM

Business Dimensions by BPM Maturity Model Level: A Summary for Reference

Level 1

Process-Aware

Level 2

Coordinated

Process

Level 3

Cross-Boundary

Process Mgmt.

Level 4

Goal-Driven

Processes

Level 5

Optimized

Processes

Organization and

Culture

Functional hierarchy Isolated champions • BPCC in place

• CPI mentality

• Matrix mgmt.

• Strategic alignment

of processes to

goals

Reputation for

process excellence

Process

Competencies

Isolated Awareness of skills

gap

Tiered model for

skilling up

Process skills

reflected in job

profiles

Everyone has core

skills

Methodologies Nonexistent Experimentation with

a few legacy process

methods

Beginning of

standardized methods

Organization-specific

toolbox in place

Input from the

collective is

incorporated

Technology and

Architecture

Application silos Paper-based models

at best

• Enterprisewide

process

nomenclature.

• IT working with

BPCC

Comprehensive

business rule

management strategy

is in place

• Simulation,

optimization,

dynamic BPM and

more in use

Metrics and

Measures

Task-oriented KPIs Process performance

measurement starts

Process Performance

Indicators (PPI) in

place

PPIs linked to

strategic goals with

real-time updates

Scenarios are stored

for easy invocation

Process

Governance

Nonexistent Steering committee

funds application

investments by IT

Global process

owners supported by

BPM Council

Matrix model to

balance local and

global concerns

Decentralized, tiered

model with local

empowerment

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved.

Janelle Hill

Advancing Beyond The Early Stages of BPM Maturity