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 © Imre Hegedu s Consultin g All Rights Reserved DRIVING SUCCESSFUL BUSINESS TRANSFORMATION AND IMPROVEMENT INITIATIVES Managing Business Processes and Change 1 Improving Performance | BPM Forum 2011 - MELBOURNE

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Page 1: Imre Hegedus - Presentation

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 © Imre Hegedus Consulting – All Rights Reserved

DRIVING SUCCESSFUL BUSINESS TRANSFORMATION AND IMPROVEMENT INITIATIVES

Managing Business Processes and Change

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Improving Performance | BPM Forum 2011 - MELBOURNE

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BPM Perspectives: from Philosophy to Culture3

Improving Performance | BPM Forum 2011 - MELBOURNE

Technologies and Structures

Philosophy Discipline Practice Culture

BPMPerspectives

World View

“this is how we see things”

Collective Wisdom

“this is how we do things”

MethodologiesStructures

FrameworksSystems

TheoriesConcepts

ValuesBehaviours

Source: BPM – Insights and Practices for Sustained Transformation

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Process focus enabled by a Philosophy and Culture4

Improving Performance | BPM Forum 2011 - MELBOURNE

”Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get 

average (or worse) results from brilliant people managing broken processes ” 

Mr. Cho Vice Chairman of Toyota 

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Emerging Themes in BPM5

Improving Performance | BPM Forum 2011 - MELBOURNE

The Enterprise as a Dynamic System

Enterprise (Business) Architecture

Executive Engagement Continuous Improvement

BPM and BPI

Business Excellence

Governance

Technology - Discipline - Culture

The Cloud – Methods - Collaboration

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CONSULTING

Improving Performance

Managing the Enterprise as a DynamicSystem

Imre Hegedus

Ark Group BPM Connected Forum | MELBOURNE 2011

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“Traditional” BPM focuses on relatively narrow

perspectives of enterprise system elements

BPM Maturity

the maturity of an enterprise to manage and improve it’s business processes 

BPM Suites

the technologies enabling the BPM lifecycle

Process Governance

structures and roles to ensure the ongoing and integrated management of enterpriseprocesses

Process Improvement

methods to improve specific business processes through rational and deficit-base analyses

People, Change, and Culture are referred to in passing

Learning is rarely ever mentioned!

7

Improving Performance | BPM Forum 2011 - MELBOURNE

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Sustainable Performance Improvement requires afocus on broader enterprise system elements

Integrating BPM and BPI

Selecting and sustaining improvement initiatives through BPM and Systems Thinking

Enterprise Lifecycles

Enterprise lifecycle stages inform the approach for managing processes and change

Engaged People

relationship-based positive inquiry to complement the rational deficit-based analysis

Cultural Awareness

appreciation for the culture being changed and that which being being strived for

Learning to improve performance

a system of learning as a means and a by-product of performance improvement

Effective Visual Communication

Using diagrams and graphics to effectively communicate messages succinctly

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Improving Performance | BPM Forum 2011 - MELBOURNE

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The Enterprise as a Dynamic System

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 ©ervedBusiness Agility | Process-Driven Transformation

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Enterprise Perspectives:Functional and Process Models

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Improving Performance | BPM Forum 2011 - MELBOURNE

Functional Model Process Model

Australia Post

Manage Finance

Manage People

Manage Information Communications Technology

Manage Assets and Services

Customer Activation Fulfill Service

Plan

Market

Directing

Core

Enabling

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Enterprise Perspectives:Systems Models

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Improving Performance | BPM Forum 2011 - MELBOURNE

Directing Processes

      S    u    p    p      l      i    e    r    s

      I    n    p    u     t    s

      O    u     t    p    u     t    s

      C    u    s     t    o    m    e    r    s

Core Processes

MonitoringProcesses

PlanningProcesses

Change& ControlProcesses

Enabling Processes

Environment

ResourcingProcesses

 

Culture

Results

Suppliers Customers

Enterprise

System

Strategy

Structures

Process Technology

People

Values

Suppliers Customers

Supplier Partnership

Customer Relationship

Value Realisation Value Realisation

Process-centric Systems Model Dynamic Systems Model

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Enterprise Perspectives:In Practice

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Improving Performance | BPM Forum 2011 - MELBOURNE

Source: http://www.ethics.org.au/content/ethics-centre-organisational-chart

This touches the Ethics Centre's conception of its role,which includes fostering and supporting practicalchange while not losing touch with the deeper springs ofhuman consciousness and identity.

The alchemist's approach reflects the Ethics Centre'sunderstanding that there is a universal ethical senseand, properly understood, there is a shared set ofvalues which informs most people most of the time.At the same time, the focus on process is important.Only an appropriate process offers the possibilitythat a transformation in thinking and understandingmight occur.

Each sign relates to a process, and together theseencapsulate St James Ethics Centre's corecharacteristics:

• An appreciation of the past combined with anorientation to the future

• Practical assistance based on sound theoreticalprinciples

• An approach which is gentle in nature

• An approach which is non-judgemental

The strength of a good symbol is that many meaningslie hidden for future discovery… 

Organisation Chart Logo – and meaning… 

Source: http://www.ethics.org.au/content/st-james-ethics-centres-logo

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Improving Performance

13

Improving Performance | BPM Forum 2011 - MELBOURNE

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Improving Performance:Managing the Enterprise as a Dynamic System

This report brings together a unique set of disciplines, concepts, and case study experiences in one reference.

The authors are all:

1. seasoned professionals ensuring real-world relevance and insight

2. thought leaders in their chosen field ensuring a strong research-base to the content

3. consultants who apply and refine their knowledge and experience across all industry sectors ensuringrelevance to a broad audience

Contributing Authors

Robert Lamb: Sustained Improvement

Malini Jayaganesh: Culture

Kimberly dela Cruz Odom: Change and Organisational Lifecycle Stages

Jane Kovacs and Michael King: Quality Learning

Jeremy Scrivens: Appreciative Inquiry

Graham Johnson: Effective Visual Communication

14

Improving Performance | BPM Forum 2011 - MELBOURNE       2

      0      1      2      I      N      D

      U      S      T      R      Y      R      E      P      O      R      T

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Improvement through Systems Thinking

Systems: optimising the performance of aparticular process will sub-optimise the wholesystem if not viewed in that context

Variation: All processes exhibit variation.Ensure processes are stable before seeking

to improve their capability Knowledge: “Facts” are mediated by theories

and world views. Develop your own theory forimprovement and continually validate it

Psychology: Processes operate in a humancontext – not always rational. Focus onintrinsic motivations rather than extrinsic

motivators

15

Improving Performance | BPM Forum 2011 - MELBOURNE

Adapted from: Deming (1993)

Deming’s System of Profound Knowledge 

System ofProfound

Knowledge

Appreciationfor a System

Theory ofKnowledge

Psychology

Knowledge

aboutVariation

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Culture is both a function of and an influence on yourenterprise

Japan Perfection 

America It works (better than before)

France Luxury 

Germany Adherence to specification 

Australia

Relationship 

Implications 

Heroes respected over process

Changes must engage employees

A good recovery is often better than getting itright first time! See heroes… 

16

Improving Performance | BPM Forum 2011 - MELBOURNE

Culture

Results

Suppliers Customers

Enterprise

System

Strategy

Structures

Process Technology

People

Values

Suppliers Customers

Supplier Partnership

Customer Relationship

Value Realisation Value Realisation

Culture is an outcomeCultural Archetype Study

We all agree that ‘    people ’ are central to the effective management 

and improvement of our business processes and yet we tend to focus on the more technical aspects of the 

discipline! 

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Change Principles underpin sustainable improvement

Sustainable change is linked to an enterprisescapability to learn

A systems-thinking perspective is key toplanning and implementing sustainablechange

Develop a transformation program based onsound change management principlescombined with tailored methods and a pacespecific to your enterprise context

17

Improving Performance | BPM Forum 2011 - MELBOURNE

Adapted from: Kotter (1996)

Adopt and adapt a Change Process

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The Enterprise Lifecycle informs the BPM Strategy

All enterprises go through lifecycle phases

Process Maturity is related to the lifecyclestage of an enterprise

The Process Improvement and Managementinterventions are best tailored to suit the

stage of the enterprise as well as the intent ofthe intervention

Enterprise Transformation Programs seek tocreate a new lifecycle curve more than justprolong the existing one

18

Improving Performance | BPM Forum 2011 - MELBOURNE

Courtship

Infancy

Go-Go

Adolescence

Early Prime

Late Prime The Fall

Aristocracy

Salem City

Bureaucracy

Death

AgingGrowing

BPTBPI

BPM

Enterprise Lifecycle and process change

Adapted from: Adizes (2004)

BPI: Business Process ImprovementBPM: Business Process ManagementBPT: Business Process Transformation

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Learning to Improve Performance

Performance Improvement occurs in anenvironment where employees areempowered to learn

Learning and improvement are inherentcharacteristics of humans – consider the

enterprise elements constrainingperformance

An effective framework for performanceimprovement is the System of ProfoundKnowledge

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Improving Performance | BPM Forum 2011 - MELBOURNE

Master

Slave

Facilitator

and Mentor

Active

Self-starting LearnerLearning

Participant

PassiveRecipient

CoachAll Knowing

Provider

DO TO DO FOR DO WITH ENABLE

Extrinsic Motivation Intrinsic Motivation

Adapted from: Langford (2009) and QLA (2011)

Management Leadership

Controlled Empowered

Employer

Employee

Learning in a hierarchical enterprise

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Engagement through Appreciative Inquiry20

Improving Performance | BPM Forum 2011 - MELBOURNE

Deficit-based Analysis (rational) Strengths-based Inquiry (emotional)

Define the Problem Select a positive topic

Analyse what is not working well (gaps) Look for positive experience - stories

Analyse the problem Identify what works

Fix weaknesses and close gaps Align strengths making weaknessesirrelevant

Reactive Technical Fix Proactive Adaptive Growth

Exit Interview – why are you leaving? Why are you staying and what have beenyour best experiences working here?

Comparison of traditional improvement approaches and Appreciative Inquiry

People embrace change that they are part of creating – any Transformation Roadmap shouldengage people rationally and emotionally allowing them to take forward the best of the past

Traditional Appreciative Inquiry

+

Adapted from: Scrivens (2011)

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Effective Visual Communication – Simplicity is theUltimate Complexity

Your audience must understand yourmessage – strive for the simplicity on theother side of complexity

Presentation of content is not merely a matterof “aesthetics” – it impacts effectiveness

Some Industry Standard notations can inhibitcommunication effectiveness

Have multiple representations of yourmessage for your various audiences

Broaden your message beyond the disciplineor topic (ie. BPM or processes) to the valuethat your message has for your audience

21

Business Agility | Process-Driven Transformation

HomeMtgLOB

CommercialFinance

LOB

ServicesLOB

InternationalBank

BranchSite

InternalEmployees

GovernmentOversight

CommercialCustomers

ATM

3rd PartyServices

Business

Customers

Customers

E-Banking

3rd PartyServices

Branch Site

PaymentService

Providers

ATM

Outsourcedservice

providers

Customers

Mortgageproviders

LegalServices

Underwriting

Customers

 © 2011 IBM Corporation

Visualise your enterprise

22

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The Enterprise is a Dynamic System… 22

Improving Performance | BPM Forum 2011 - MELBOURNE

Culture

Results

Suppliers Customers

Enterprise

System

Strategy

Structures

Process Technology

People

Values

Suppliers Customers

SupplierPartnership

CustomerRelationship

Value Realisation Value Realisation