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Building Out Business Process Capabilities With Business Process Centers of Excellence


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Building Out Business Process Capabilities With Business Process Centers of Excellence

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Building Out Business Process Capabilities With Business Process Centers of Excellence

  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 Business Process Excellence (PEX): Building-out Business Process Capabilities 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 an Accelerator 5/10/ 2
  3. 3. WHAT DO ALL THESE METHODS HAVE IN COMMON? Business Process Excellence (PEX): Achievement of superior business performance through ongoing process management and resulting process optimization. 5/10/ 3 KaizEn TQM Continuous Improvement
  4. 4. 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 5/10/2016 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 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 6% 5% 8% 24% 58% 0% 10% 20% 30% 40% 50% 60% 70% 200+ 100 - 200 50 - 100 10-50 0-10 BPI Team Size (FTE’s)
  5. 5. Business Process Improvement: involves the redesign of core business processes to achieve dramatic improvements in cost, productivity, cycle-times and quality. WHY PROCESS EXCELLENCE? • 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: Enabling the organization to pivot and better respond to shifting market and customer demants; Typical Performance Impacts What Does PEX Enable? 5/10/2016 Client
  6. 6. 5/10/2016 6 WHY EVOLVE TO A MORE ROBUST BPE CAPABILITY? FINANCIAL OPPORTUNITIES Integrated BPI / Technology initiatives often provide significant tangible benefits to the organization and result in better aligned business & technology solutions Survey of Business Process Initiatives ROI After Project Roll-Out * BPTrends; A Survey of Business Process Initiatives, 2007 Developing a broader PEX Capability helps provide visibility to project cost benefit as well as improving overall project ROI
  7. 7. 5/10/2016www.centricconsulting.c 7 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 Developing BPE Capabilities reduces reliance on external consultants
  8. 8. 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? 5/10/2016 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
  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 PEX COE • Reporting Structure of the PEX 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 the Enterprise • COE Resource Model: Define roles, skill-sets, and capacity required. Close on approach to source, develop, and manage BPE practitioners across the Enterprise and the BU’s • Common Methodology and Tools: Collaboratively determine relevant BPE methodologies and tools for use within the Enterprise. 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 PEX 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 5/10/2016
  12. 12. 12 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
  13. 13. EPMPO / BU ROLE IN BPE GOVERNANCE 5/10/2016 13 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
  14. 14. Companies who that have committed to evolving Business Process Excellence capabilities are focused on using it to deliver on their most strategic initiatives ROLE OF PROCESS / OPERATIONAL EXCELLENCE FUNCTION 5/10/2016 9% 12% 17% 23% 33% 0% 5% 10% 15% 20% 25% 30% 35% A way to deliver culture and leadership change across the organization A way to improve the quality of a product or service A way to cut costs by improving productivity and/or reducing headcount A way to improve customer satisfaction through better quality and efficiency A way to help organization deliver its strategic objectives Role of Process/Operational Excellence Within Organizations SOURCE: SPECIAL REPORT: ALIGNING STRATEGY WITH OPEX TO DRIVE SUSTAINABLE, ENTERPRISE-WIDE TRANSFORMATION; PEX PROCESS EXCELLENCE NETWORK 2015/16
  15. 15. 5/10/2016 15 Questions? Chicago Land Business Consulting Lead: Mark Buchynski National Centric PEX Lead : Thomas Ujvagi