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Process Performance Zone. Becoming a Process Centric Organisation. Project Challenge Expo 2007 Ludovic Relandeau. Speaking Notes available on slides Reproduction strictly forbidden without written authorisation from MEGA International. MEGA International.

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Process Performance Zone


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    1. Process Performance Zone

    2. Becoming a Process CentricOrganisation Project Challenge Expo 2007 Ludovic Relandeau Speaking Notes available on slides Reproduction strictly forbidden without written authorisation from MEGA International

    3. MEGA International Specialist in performance of medium & large Organisations for 15 Years • 250 employees • 150 specialists in BPM, EA & Risks • 2,000 customers in 40 countries • 35000 men days of projects per year Revenues (M€)

    4. What does MEGA provide? • Methodology • Proven to enable organizations to plan, implement, and sustain repeatable BP, EA and Risk strategies • Consulting Expertise • Subject Matter Experts in BP and EA analysis and change management • Software Suite • A ranked leader by Gartner, Forrester, and others • Designed for a shared, centralized repository

    5. 3 Questions • “Business Process Centric” is a recurring term showing the interest of companies for being customer focus, but often • Remains a confidential activity • Limited Buy In, unrealistic expectations • ROI not clear, value not perceived • Processes not clear & confusing • Redundant & Inconsistent Initiatives • … • Do we understand Business Processes? • Why Business Processes are critical to performance? • Moving towards a BP Centric Organisation?

    6. Processes vs. Processes vs. Processes…etc • “Process” is used by all and mean different things to all • But confusing processes types prevents from managing them • Processes interacting with Clients • Processes that are strictly internal • Processes describing “who does what” • Processes describing elementary tasks • Processes between Applications • Processes inside Applications • Processes inside Databases • … = Customer Business Processes = Internal Business Processes = (organizational) Procedures = Standard Oper. Procedures = IT Collaboration (ebXML) = (automated) Workflows = Stored Procedures

    7. Business Processes = Value to Customer • The enterprise is competitive because it offers added value to customers within certain conditions of time, cost and quality • The need for formalizing the Value Chain comes from the need to control the production of a service to a customer • It is a management issue !

    8. Main Business Dimensions Static Dynamic Business Functional Expertise Processes Organisational Organisation Procedures

    9. Identify Business Processes End to End Business Processes are identified from Enterprise customers view point (in green) Internal Business Processes, while obeying to the same principles, are defined from internal customer requests

    10. Identify Business Processes Activities (and enabling resources) can be shared by several business processes Supporting Activities may contribute to the value chain and therefore belong to the business process definition while not within the critical path Scope is Arbitrary

    11. Identify Business Processes Information Flows (messages) Provide the path from one activity to the next Remark: on these drawings Information flows are not identified

    12. Business Processes Diagram External Third Parties Customer Domain of Expertise Information Flow Activity (Step)

    13. Organisational Procedure Example of an Organizational procedure showing roles and responsibilities Internal Role IT Resource Previous Procedure (pink) or Department (blue) Information Flow External third party Operation (Step)

    14. Automated Process Example of an automated Process using the BPMN notation Trigger Condition Operation (Step) Communication Role Transaction Information Flow

    15. Summary • Understanding of the various types of Processes • Value Chain: Customer driven • Organizational Procedure: Responsibility driven • Workflow: Implementation driven • Clear criteria to • Select the type of process adapted to the challenge to resolve • Identify processes and corresponding level of details • Map and model consistently small & large scopes • Clear articulation between the types of Processes • Facilitate tactical approaches (bottom up & top down / projects) • Ease the ownership and the maintenance of the processes

    16. 3 Questions • “Business Process Centric” is a recurring term showing the interest of companies for being customer focus, but often • Limited Buy In, unrealistic expectations • ROI not clear, value not perceived • Processes not clear & confusing • Redundant & Inconsistent Initiatives • … • Do we understand Business Processes? • Why Business Processes are critical to performance? • Moving towards a BP Centric Organisation?

    17. Performance • Performance is not “Over Quality” • Performance is about balance between • Customer Satisfaction (quality, responsiveness, communication, price of service / product…) • Cost of delivery (resources, rationalization, risks, operational performance…)

    18. A few facts • Customers are more demanding • Complexity of Organisations grows • # 70% of activities are not automated • Organisations = People = Interfaces • Large proportion of Operational Performance resides in the ability to make exchanges effective Ability to “reconfigure” the business according to customers viewpoints is a strategic differentiator

    19. Performance • What resources are in the critical path? • What performance should the company aim for? ££ ££ ….. ….. ££

    20. Summary • Business Processes • defines the scope of assets to be managed • Doesn’t care about silos • Is independent from the organisation and systems • But “glues” everything together • defines the performance indicators • defines all interactions with customers Business Processes are the operational & strategic management tool making the organisation agile & customer aware

    21. 3 Questions • “Business Process Centric” is a recurring term showing the interest of companies for being customer focus, but often • Remains a confidential activity • Limited Buy In, unrealistic expectations • ROI not clear, value not perceived • Processes not clear & confusing • Redundant & Inconsistent Initiatives • … • Do we understand Business Processes? • Why Business Processes are critical to performance? • Moving towards a BP Centric Organisation?

    22. Process Capability Maturity Model

    23. Segregation of Duties Board Performance Improvements Compliance & Auditors Process Owner Audit & Compliance requirements Complete non ambiguous Model Coordination & Potential Improvements Methods BP & Operational Information Methodology Expert ExpertModeller OperationalBusiness and / or IT

    24. Becoming a Process CentricOrganization Questions?

    25. Process Performance Zone