Overview of the Business Process Maturity Model ... - Semantic Scholar

BPMM Overview © 2004

TeraQuest

Overview of the Business Process Maturity Model (BPMM)

Bill Curtis Co-Founder & Chief Scientist 1


TeraQuest

The Business IT Divide

Quality of Requirements

Accuracy of Estimates

Process Consistency

Process Discipline

2

On the Way to Level 3


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Level

The Business

IT

3

“We’re now the problem”

“We know”

2

“Non-responsive”

“No, it will take longer!”

1

“You’re not a reliable partner”

“We know”

3


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1) Functional Fractures

Bill of sale

Contract

System

Invoice

Sales

Legal

Product

Finance

VP

VP

VP

VP 4

2) Best Practitis


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Business Process 1 Business Process 2

Best practice 3 Best practice 1 Best practice 4

Best Practice 2 Best practices are not always integrated into a seamless process

Business Process 2 5


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3) Process Obesity

Level 3—Standard Process Work Unit 1

Work Unit 2

Work Unit 3

Standard Process

Defined Process

This is a process description derived from the local method of doing it


Work Unit 4

Work Unit 5

Level 2—Local Processes Work Unit 1

Work Unit 2

Work Unit 3

Work Unit 4

Work Unit 5

Process description

Process description

Process description

Process description

Process description






6

4) Technology Envy


TeraQuest

Standard Process

Level 3


Process Process description Process Processdescription This is a process This is a process description derived from Process description derived from the local method ofdescription doing it description the local method of doing it This is a process This is a process description description derived from Process description derived from This is a process the local method of doing it Process the local method of doing it description derived from description the local method of doing it Process This is a process description description description derived from This is a process

Level 2

the local method of doing it

description derived from the local method of doing it


Level 1 7


TeraQuest

5) Configuration Conflagration Materials whose current states are tightly linked must be controlled

The materials that support your work must be consistent with each other

= Training

= Process maps

= Forms

Systems 8


6) ****flow

TeraQuest

Sales

Legal

Provisioning

Finance

Bill of sale

Contract

Specification

Invoice

Items left off bill of sale

Incomplete information

Unspecified Requirements

Incorrect invoices

rework value adding work

rework

BPM focuses on the enterprise: • • • •

value adding work

Create seamless workflow Integrate functional silos End snowballing rework Roadmap for automation

rework

value adding work 9


Reasons for Adopting1

TeraQuest

Client 1: International Bank Objectives:

Barriers:

• Achieve cost reductions • Recognition for efficiency

• Overload, rework • Multiple ways to do similar things • Disappointing automation results

Client 2: Health Care Services Company Objectives: • Reduce billing errors • Provide framework for 6σ and business process reengineering

Barriers: • Workflow bottlenecks, errors • Difficulty selecting 6σ projects • Disappointing end-to-end solutions

10


Reasons for Adopting2

TeraQuest

Client 3: Semiconductor Equipment Supplier Objectives: • Integrate improvement framework • Extend process maturity benefits to every business process

Barriers: • Multiple improvement frameworks • Best practices rather than processes

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TeraQuest

Process Maturity Foundations Business Process Management • process domain • best practices • goals & benefits

Total Quality Management

• Deming, Juran, Crosby • quantitative management • continuous improvement

Organizational Change and Development • cultural evolution • organizational learning • change management

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Begatting of Maturity Models


TeraQuest

Crosby’s Quality Maturity Grid

System Eng. CMM

Humphrey’s Process Maturity Framework

Shewart, Deming SPC & PDCA

CMM for Software

People CMM

Acquisition CMM

Business Process MM

CMMI

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TeraQuest

Evolution of Maturity Models

Business Process MM

Built on CMM foundation

Early and continuing ROI

Aids business-IT fusion

Business Sector

IT Organization

BPMM

IT MM

IT Maturity Model

IT Operations needs a CMM

ITIL/COBIT provide content

CMM provides roadmap

CMM/CMMI

Project-based models

Understood principles

Proven successes

Application Development Pro

rity atu M s ces

SW-CMM CMMI

wo me a r F

ITIL COBIT

rk

ISO MBNQA

14

A Family of BPMMs


TeraQuest Transaction -based service businesses

Information technology operations ITIL, COBIT

Business Process MM

Service Operations Maturity Model

BPMM Marketing

BPMMInformation Technology

BPMM Manufacturing

BPMM 15


TeraQuest

Business Process Maturity Model Level

Objectives

(5) Optimizing

(4) Predictable

(3) Standardized

(2) Managed

(1) Initial

Continuous proactive improvement

Benefits Achieve targets Flatten organization Business agility

Manage process and performance quantitatively

Predictable results Reuse Real-time corrections

Establish standard end-to-end, integrated business process

Productivity growth Effective automation Platform for growth

Create disciplined management within work units and stabilize work

Motivate people to overcome problems and just “get the job done.”

Reduced rework Reduced overload Stable local procedures

Hero worship

16


TeraQuest

Process Maturity Framework Level 5 Optimizing

Change management

Level 4 Capability Predictable management Level 3 Business line Standardized management Level 2 Managed Level 1 Initial

Work unit management

Inconsistent management

Co n im tinu p pra rov ousl cti ing y ce s

Qu an ma tita pra nag tivel cti ed y ce s

S be tand st ard pr ac ized tic es

Re p pr eat ac ab tic le es

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TeraQuest

Initial Organizations

Undisciplined

Few repeatable processes, often sacrificed under pressure

Individualistic

People rely on personal methods for accomplishing work

Inconsistent

Little preparation for managing a work unit

Inefficient

Few measures for analyzing effectiveness of practices

Stagnant

No foundation or commitment for improvement 18

Initial Organizations


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Managed Organizations

Committed

Executives commit organization to improving operations

Proactive

Managers take responsibility for work unit operations & performance

Managed

Commitments are balanced with resources

Repeatable

Work units use locally-defined practices that have proven effective

Responsible

Work units are capable of meeting their commitments 20


Organizational Process Leadership

TeraQuest

Level 2 Process Areas Work Unit Requirements Management

Work Unit Performance

Work Unit Change Management

Sourcing Management

Work Unit Planning and Commitment

Work Unit Monitoring and Control Process and Product Assurance 21


TeraQuest

Levels 2 to 3 Transition

Enterprise-wide end-to-end, integrated business process Work Unit 1

Level 3 Confederated units Procedures

Work Unit 2

Work Unit 3

Work Unit 5

Standard Process

Tailored Process



Procedures Procedures Procedures 1. Do this first

Procedures

Procedures Procedures

Procedures Procedures Procedures Procedures

Work Unit 3

Work Work Unit4a4 Unit

Work Work Work Unit55 Work Unit Unit 5 Unit 5a

1.2.Do Dothis thisfirst next 1. 2.Do this first next 3.Do Dothis this last 2. 3.DoDo this next this last 3. Do this last

Work Unit 1

Work Unit 4

Work Work Work Unit22 Unit Unit 2a

• Do this • Do this • Do that • Do that

Level 2 22


TeraQuest

Standardized Organizations

Strategic

Focuses on end-to-end integration of business processes

Organizational

Integrate best practices from work units into standard processes

Tailored

Processes defined for use tailored from standard processes

Leveraged

Common measures and processes promote organizational learning

Professional

Organizational culture emerges from common practices 23


TeraQuest

Organizational Process Management

Level 3 Relationships Product and Service Preparation

Product and Service Deployment

Product and Operation

Product and Service Support

Organizational Competency Management Organizational Resource Management Configuration Management

Domain

Product and Service Management 24


TeraQuest

Predictable Organizations

Quantitative

Process variation, performance, and capability understood quantitatively

Stable

Variation reduced through reuse, mentoring, & statistical mgt.

Empowered

Corrective action taken at the point of performance

Integrated

Processes integrated across participating disciplines

Predictable

Outcomes predictable from subprocess capability & performance 25


TeraQuest

Level 4 Process Areas Organizational Capability Management

Organizational Common Asset Management

Business Process Integration

Quantitative Process Management

Quantitative Business Management 26


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Optimizing Organizations

Strategic

Improvements planned to achieve business strategies & objectives

Systematic

Improvements evaluated and deployed using orderly methods

Dedicated

Individuals and workgroups continuously improve capability

Aligned

Performance aligned across the organization

Preventative

Defects and problem causes systematically eliminated 27


TeraQuest

Level 5 Process Areas Organizational Improvement Planning Organizational Process and Product Innovation

Defect and Problem Prevention

Organizational Improvement Deployment

Continuous Capability Improvement Organizational Performance Alignment 28


TeraQuest

Changing the Organization Organization establishes process framework

Individual

Di

Project

sc ip lin e

Organization

Management establishes process discipline

Proactive organizational Improvement projects

Project reduces process variation

Ad hoc, inconsistent, undisciplined process

1

Trust

Individual improves personal process

2 3 4 Maturity levels

5 29


TeraQuest L e v e l

5

Process Area Linkage

Process Areas Linked by Role Responsibilities Organizational Management

Organizational Process Improvement

Org. Improvement Planning

Org. Product and Process Innovation

Continuous Capability Improvement

Org. Performance Alignment

Org. Improvement Deployment

Defect & Problem Prevention

Org. Process Capability Mgt.

4

Org. Common Assets Mgt.

3

Organizational Resource Management

2

Organizational Process Improvement Leadership

Organizational Process Management

Service Operations Management

Quantitative Service Management

Service Management

Service Operations Work Performance

Quantitative Process Mgt. Service Process Integration Service Development Service Deployment Service Delivery Service Maintenance and Support

WU Reqts. Mgt. WU Plan. & Commit. WU Monitor. & Control Sourcing Mgt.

Service Operations Support

Work Unit Performance

Organizational Competency Management Configuration Management Process & Product Assurance

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TeraQuest

BPMM to CMMI Mapping BPMM

CMMI

5

Org. Improvement Planning Org. Performance Alignment Defect and Problem Prevention Continuous Capability Improvement Org. Process & Product Innovation Org. Improvement Deployment

Causal Analysis & Resolution Organizational Innovation & Deployment

4

Org. Common Asset Mgt. Org. Process Capability Mgt. Service Process Integration Quantitative Service Management Quantitative Process Management

Organizational Process Performance Quantitative Project Performance

3

Org. Process Management Org. Skills Management Org. Resource Management Product & Service Management Product & Service Development Product & Service Deployment Product & Service Delivery Product & Service Maint. & Support

2

Org. Process Improvement Leadership Work Unit Requirements Management Work Unit Planning and Commitment Work Unit Monitoring and Control Work Unit Performance Sourcing Management Configuration Management Product and Process Assurance


TeraQuest

Organizational Process Focus Organizational Process Definition Organizational Training Decision Analysis & Resolution Integrated Project Management Risk Management Requirements Development Technical Solution Product Integration Verification Validation Requirements Management Project Planning Project Monitoring and Control Measurement and Analysis Supplier Agreement Management Configuration Management Process & Product Quality Assurance

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BPMM and Six Sigma Level

Expected benefits

5 Optimizing

Continuous, proactive, datadriven improvement; Design of experiments

4 Predictable

Statistical process control; Understand and control sources of variation

3 Standardized

Standardize process to enable organization-wide benefits from Six Sigma projects

2 Managed

Stabilize process to achieve meaningful data and establish foundation for Six Sigma 32


TeraQuest

Conclusions

BPMM provides a framework to improve end-toend business processes • Improvements done when the organization is ready for them • Approach based on proven maturity model concepts (developed by original authors of SW-CMM, CMMI and People CMM) • Leverages industry experience with maturity model-based improvement • Targets improvements for manageable units to start • Enables effective six sigma use at all levels of maturity

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