4S8P0 Zb727 Starting and Suceeding With BPM Student Guide

Starting and Succeeding
with BPM
(Course code ZB727)
Student Book
ERC 1.0
WebSphere Lombardi Education
WEBSPHERE LOMBARDI EDUCATION
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March 2011 edition

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ii
Table of Contents
Table of Contents
Trademarks
ii
Introduction
Course Overview
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Learning Objectives
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
General Information
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Unit 1: Understanding the BPM value proposition
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
What is BPM? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
BPM essentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
The value of BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Exercise 1: This is BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Unit 2: Building a process driven culture
67
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
What is a process driven culture? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Center of competency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Change management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Training, education, and enablement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
BPM outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Exercise 2: Changing the culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Unit 3: Leveraging BPM delivery best practices
109
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Where do I begin? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110
Project one versus BPM program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
116
BPM project success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

Exercise 3: Moving from BPM project to BPM program . . . . . . . . . . . . . . . . . . . . . 138
Starting and Succeeding with BPM
iii
Introduction
Course Overview
This course is an offering tailored for Process Owners and anyone else
interested in learning Business Process Management (BPM) basics,
understanding the foundation for starting BPM in your organization, and
ultimately succeeding with BPM. BPM is a journey, knowing how to
navigate this journey will make BPM success a goal that can be reached
without fail.
The importance of having an efficient system of business processes to
drive an organization is a basic principle of todays competitive business
environment. Organizations turn to BPM to drive those efficiencies, but
BPM can have different meanings and there can be different strategies for
the successful implementation of BPM. The goal of this course is to explore
BPM and the strategies, tools and methodologies that are needed for a
successful BPM program. This course accomplishes this goal through three
main topics:
Unit 1: Understanding the BPM value proposition a look at
foundational BPM concepts and what benefits can be derived from BPM
Unit 2: Building a process driven culture a discussion on what
constitutes a process driven culture and how to transform your organization
Unit 3: Leveraging BPM delivery best practices it is important to
understand how to start and maintain a BPM program in your organization,
so this unit deals with the key areas that help insure successful BPM
delivery
Starting and
Succeeding with
BPM
Learning Objectives
After completing this course, students should be able to:
Describe and explain the BPM value proposition
Employ process-driven culture standards
Employ BPM project delivery best practices for a successful program

implementation
General Information
Duration:
2 hours (approximately)
Audience:
This course is designed for BPM Process Owners or anyone else interested
in learning key strategies and methodologies that undergird BPM programs.
Prerequisites:
None
Skill Level:
Basic
Delivery Method:
Self-paced Virtual Classroom (SPVC)
Introduction
Starting and
Succeeding with
BPM
General Information continued

Other
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Unit 1:
Understanding
the BPM value
proposition
This unit is about the BPM value proposition. This unit provides a
definition of BPM, presents fundamental information necessary to
have a solid BPM program and the benefits that are obtained with
BPM in any organization. Having a keen understanding of these key
BPM concepts will establish the foundation for establishing a BPM
program.
Objectives
After completing this unit, you should be able to:
List and describe the components of BPM
Define the importance of each BPM component
Explain the BPM value proposition
List the BPM essentials
Topics
This unit includes the following topics:
Notes:
Introduction
What is BPM?
BPM essentials
The value of BPM
Notes:
Topic 1: Introduction - why do we need Business Process Management?
10
Notes:
A state without the means of some change is without the means of its conservation. Edmund Burke
Companies often seek ways to improve their organization to increase productivity, lower cost
and increase revenues. The challenge organizations face is that change is inevitable in business.
Market economies and other factors drive customer needs. The ability to meet the needs of
customers is vital to the revenue success of a business.
However, because market factors change, there is also constant change in what a customer wants
or needs. In some cases, companies try to stay ahead of the constant change. This means that
businesses should not rely solely on a reaction to customer needs, but an ability to change when
the customer needs change with the least amount of disruption to productivity and cost.
That is quite a challenge!
11
Notes:
Key to an appropriate business reaction to the evolving customer needs are the business
processes used to meet the challenges. But a business process can also hinder meeting changing
customer needs because of the process lack of ability to change quickly or handle the need
appropriately. As the business process slows down or even stops the companies ability to meet
customer needs, the more the company suffers.
Sometimes answers to a broken business process is an increase in expenditures, such as more
technology or resources. In many of those cases, the reality is that no appreciable change in the
business process is realized. The company has only managed to create an increase in cost and
drop in productivity.
12
Notes:
Change is often looked at as a painful proposition, especially in business. And since some
business processes can be confusing and hard to get a handle on, it is difficult to imagine applying
an easy fix or change. All the more reason to have some level of stress and discomfort when
thinking about what needs to be done to change.
So the focus should remain on the key motivators to embrace change for business processes:
Customer Satisfaction
Employee Satisfaction
Financial and productivity gains
These three pillars provide the motivation to seek business process change and improvements.
When thinking about business process change, keep in mind what end result are desired.
13
Notes:
This is where Business Process Management (BPM) provides the desired system or solution for
business process change. Simply put: BPM is about the management of change that results in
process improvement.
Of course, business processes have been managed in the past before BPM. Organizations have
used a variety of tools and techniques. However, these techniques were partially successful, or
failed outright, because there was a lack of standards and a complete lifecycle to control and guide
the design, execution, and change for improvement of business processes.
All the things where BPM excels.
14
Notes:
Managing process change cannot be an ad-hoc effort it requires the proper management to
exercise control, or governance, over the discovery, design, and deployment of processes. It also
requires that both business and IT groups collaborate over the governance of these areas. All this
and the need to change quickly too. In other words: an agile business process.
Without the proper management standards, for example Business Process Management Notation
(BPMN) for process models, you will have fragmented approaches to manage a process. You also
run the risk of disjointed collaboration between groups that will migrate back towards hand-off and
a silo approach to process management and change. In the end, you lose any chance at agility.
Central to well implemented BPM is the process model. This business process diagram, based
on BPMN, communicates the business process needs so it is understood by everyone, executed
to exact requirements, and managed with minimal delay.
15
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Notes:
Topic 2: What is BPM?
As noted - BPM is concerned with the management of change to improve business processes.
This section takes a closer look at BPM in a comprehensive manner. What are the main building
blocks of BPM? What is a process? Who needs to be involved? These are a few of the questions
tackled.
17
Notes:
BPM is the means by which companies and governments improve their operations
by leveraging internal business expertise in new, scalable ways. This is achieved by
directly engaging business people in the design and creation of enterprise-class process
applications. - Phil Gilbert, IBM VP, BPM
BPM starts with a vision for the implementation of the BPM program. At times, BPM is
fragmented into a handoff from business design and definition of process improvements to the
IT group execution and deployment efforts. This sort of fragmentation will lead to misalignment
of business goals with technology-based implementations, or just plain failure to achieve any
appreciable productivity and revenue gains using BPM. At minimum, it will bring about a loss of
agility to change a broken process quickly.
The best vision is to have business groups involved at all stages with the IT groups and create the
business culture that everyone understand process needs and how to effect change for the better.
To do that, it starts with understanding just what BPM really is.
So lets take a look at a more thorough view of BPM in terms of the components needed for BPM
program success.
18
Notes:
The key components, or building blocks, for Business Process Management are:
Organization
Processes
People
Technology
All aspects need to be present and working in order for BPM to be a success. Each component
is important and one cannot stand out more than the others. In fact, an over dependence of one
component over the others in BPM will lead to ineffective process improvement.
For example, if technology were stressed in an organization as the key factor in BPM, then the
very real possibility will exist that process analysis and measurement will be ignored. There may
be a misguided view that just automating a process is the way to improve it. However, if a legacy
process was badly implemented to begin with, automation only means the bad process is much
more efficiently bad.
19
Notes:
A closer look at each component individually, starting with Organization.
20
Notes:
All components are important, including the looking at an organization in terms of how well
business change will be handled by the business culture. If a successful BPM program is desired,
there must be a look at how well the organization is structured to handled BPM as a whole.
Looking back at the BPM the vision of Business and IT working in collaboration, the organizational
culture is where it is realized.
A company structured as a functional silo organization will have difficulty implementing a
successful BPM program that is geared towards collaboration and process improvements.
Other items to consider:
Governance who is in control of the process needs and improvements?
Change management what do we change and how often? How do we maintain agility in our
processes?
Roles and responsibilities what do BPM teams look like?
Skills what training plan do we need?
21
Notes:
A look at the most fundamental concept in BPM: what is a process?
22
Notes:
So what is a process?
A process is a set of activities that takes specific inputs and converts them into specific outputs in
a desired, predictable fashion. Inputs are typically information or set of information that triggers a
set of activities in the process. Outputs are the decisions rendered by the set of activities.
23
Notes:
Going by the definition of a process, it does not take long to realize that processes are
everywhere. Think of washing a car as a process. Input would be dirty car, the activities would
be rinse, soap, wash, rinse again and dry the car, and the output would be a clean car. So
if processes are everywhere, how is the proper perspective of a process established in an
organization?
Looking at an example process: Incorrect Bill received leads to Money Refunded.
(input) A call with a problem on our bill (information)
(set of activities) - Things happen (process)
(output) - All we really care about is the refund (decision rendered)
The interesting part of the example process is what happens in the middle (the set of activities)
who is involved, inside and outside the company
what systems are involved
what are the rules (both company policies and also external rules, like federal regulation)
what are all the disputes that are in-flight ahead of this dispute (wait time to complete the
process)
how is the process performing
This is what is commonly refer to as a business process, a set of activities that occurs within
a business enterprise to produce outputs that contribute to business value. The business value
for the example may be one or all of several things: business policy compliance, customer
satisfaction, and/or customer retention.
There are also all types of business processes in a company:
24
mission critical business processes that deal with creating and managing products and
services
back office business processes
regulatory compliance business processes
Notes:
Drillingl down into the business process itself, it becomes apparent that the set of activities
actually has a workflow. The business process workflow requires a supplier to initiate the input
for the business process. This supplier can be anybody or anything that supplies the information
necessary to start the business process. This includes an automated system, such as an
automated notification that a request has been initiated. The process task then handles the input
information so as to render a decision output. The consumer for the business process tasks is
anyone or anything that consumes the process output. This can include the next process step, a
internal entity such as a manager or process owner, an external entity such as a customer, or even
another process.
25
Notes:
In this example, a process workflow is described using the items found in a business process.
This example shows what usually would be detailed early in a process discovery session by a
BPM Analyst. The key would be to convert this information into a process model, or a graphical
representation of the workflow using the standard created for BPM known as Business Process
Management Notation (BPMN).
Remember that processes are vital to BPM. Understanding what a process is, what it
is comprised of and how to detail the information for a process goes a long way towards
understanding how to analyze, model, optimize, and improve the process so it is the best
business process that can be implemented in an organization.
26
Notes:
Now that you have your business process in place, its time to look at how vital people are to
BPM. Most importantly, what specific role do they perform and how are those roles identified
and managed.
For now, this topic will centered on process task people.
27
Notes:
Supplier and customer were discussed in terms of inputs and outputs and how people could
both initiate a process and consume process decisions. Now the discussion is the roles people
perform within the business process activities (or tasks). In particular, look at two roles:
28
Responsible
Accountable
Notes:
In BPM, defining the responsible role for performance of a task is a good place to begin. People
typically will perform most task, but there are task that can be automated if it will bring about
process improvements in terms of quicker response times.
Why are people important?
Processes are only as good as the performance of the process task. Using the Bill dispute
process example, what if the first person to receive notification that a request has been made by
a supplier that a refund is desired was not aware that they are responsible to review the request?
What if they know they are responsible for the review, however are unaware who is responsible
for the approval of the refund? At this point it is a broken process. Some organizations are
unaware that a process is broken because of lack of visibility for a business process and the
intervention of process heroes.
People who perform the task or steps within a business process must know they are responsible
for a task. BPM will not only detail what tasks must be performed but also identify the
responsible roles to perform these important task. Early in a process analysis, User Stories will
be used to identify responsible parties who perform process tasks.
29
Notes:
A broken process and the need for process heroes can be mitigated by the role of the accountable
party in BPM. Accountable parties are known as the people or role where the buck stops here.
The accountable role is also relegated to one person, and not a group as in the responsible role.
This is a very important single person role to bridge between the performance of a task and the
stakeholders desire to reach business goals.
Without an accountable role in BPM, the process would be difficult to manage, primarily in realtime. There is also the need to manage a business process in terms of process performance
improvements using historical data. Unlike real-time, this is a long term proposition, but still a role
that an accountable person will handle. Using process performance data, they help drive business
process changes and improvements. User stories can also be used to identify business process
accountable roles. Remember, this is about Business Process Management so this is a vital
role.
In our example, we notice that the manager of a particular group of process task roles is held
accountable for the real-time performance of the tasks. This can be amplified and include a
process owner who would want similar data to evaluate long term process performance. This
would, of course, be overall process tasks and more of a historical view of the process in order to
effect change. The important thing to remember is that BPM requires an accountable role to help
with the program. This is known as process visibility, a key factor in the BPM value proposition.
30
Notes:
There are other roles in BPM beyond the responsible and accountable roles. A consulted role
provides opinions and information to help evaluate a process task or overall process performance.
The informed role is typically the stakeholder role who attends project development or program
status meetings to receive information about the business goals being met. A process owner
can act in a consulted role for some process tasks and a accountable role for the overall process
performance evaluation.
In the example process, the manager and reviewer asked Legal to provide information on a
business policy before they go to the next process task. In this case, they are also keeping a
Director of Services informed of the situation. If this type of situation occurs often in a process,
then the next iteration of the business process can have the opinion rendered as a business rule
implemented to keep the process from slowing down for a legal review. That is an example of
process improvement and change for process effectiveness.
31
Notes:
Any good process can get stuck. A task or step is not performing well for whatever reason that
may arise. In the example process, perhaps the customer failed to provide all the information
necessary in the request for a refund, or maybe the manager forgot to approve a certain reviewed
request, or the escalation of a step was not completed properly. This is where BPM can fail to
provide the success an organization is looking for.
The level of process visibility for these incidents necessary for BPM success is achieved with
technology. Technology also supports BPM process improvement through automation of tasks
that can be handled by business rules or system integrations.
32
Notes:
This is an example of the relationship between technology and business know how. The best
technology can be used, but if the process know how is missing, BPM challenges will arise.
It would not make sense to spend time analyzing process needs, including designing the
process changes desired to reach performance goals, known as KPIs, and then have a disjointed
technological approach to reach those goals.
In the same manner, a set of unattainable goals that put unnecessary burdens on the use of
automation and other BPM technology should not be desired. For example, reporting and
analytics within BPM are geared towards process performance metrics. Asking BPM technology
to go beyond those analytics is going outside the best use of BPM technology. In such examples,
business needs to understand the technology and how it is used.
This is still about Business Process Management and both technology and know how play a
role towards that end.
33
Notes:
The use of technology and know-how happen in the standard BPM phases, also known as the
BPM lifecycle, a proven and repeatable model. All BPM programs use this lifecycle or a variance
of the lifecycle to gauge when and what should be the focus and status of a BPM implementation.
Some may choose to be more precise with the phases in the lifecycle, such as:
Modeling can be divided into two phases or described as: Modeling and Simulation
Execution can also be divided into two phases or described as: Execution and Monitoring
Words such as implement, measure, and improve used to describe the focus of some of
the phases may be subsituted
The BPM lifecycle provides the focus and goals during each phases for both business and IT
to work towards. During the Design phase, a pronounced lean towards know how may be
necessary. During the Execution phase, it would be just the opposite lean towards technology and
automation.
34
Notes:
BPM is not static because the nature of change is dynamic.
Organizations also strive not to be static. So the focus is to change the business process as the
business goals and requirements change. For well implemented BPM, the allowance for change
is important. Using the BPM lifecycle as the anchor point, the best approach to overall business
process change is to use iterations builds for the business process improvement. This also allows
for optimization as a key phase of the lifecycle.
Change, however, can brings fear to an IT organization because at this point, change can mean
costly new process application builds or a total re-work of existing applications. This is where
having the right technology strategy to build a business process application will help.
35
Notes:
The cornerstone of our BPM technology approach is the strategy of a shared model: all parties
involved in the effort to define, model, implement, measure, and improve the process are working
from a common shared platform that encapsulates all of the various components.
This strategy helps keep the focus of bringing business into the same room as IT intact. Sound
process models also provide the stability to a process application that will allow for iterations of
the application without fear of having to start from scratch.
The business analyst modeling the process, the IT developers constructing the detailed
implementation of the process application, the process responsible roles executing the process
tasks, and the process owner and analysts who monitor and identify improvements are all using
the same process model.
The model of the process built by the analysts and developers is the same one that executes at
run time, and is the same one used to create reports on the current performance and status of the
process, and the same one used to model and simulate potential improvements.
36
Notes:
Without the Shared Model, there is a wait to build all the artifacts to in order to publish and
then deploy on an application server before there is a running application. Playback of the real
application cannnot be done until the process application is complete. Without the shared model,
collaboration is difficult and roundtrip engineering is impossible.
How many different tools will need to be managed? Without a shared model, how different is this
than traditional development in managing multiple interrelated code or configuration files that are
fragile and brittle? What is lost is that the shared model environment allows 4-10X productivity in
development, especially in follow-on iterations to truly enable continuous process improvement.
Putting it all together for an enterprise BPM deployment, without a shared model, there
is creation of custom applications, unnecessary rework, or inconvenience end-users with
improvement downtimes. This turns very ugly quickly and becomes an unmanageable problem.
It should look very familiar this is exactly what a custom application developement looks like!
Managing lots of different tools, deploying code, a single portal per process, and too many data
integrations.
Without the shared model, you may get the productivity benefit of the individual tools a BPM
product delivers, but its still not agile enough to handle change quickly. This evolves into a
limitation in the ability to change and manage multiple processes.
37
Notes:
So now the right perspective of technology and the symbiotic relationship with know how is set.
Basically how business and IT need to work in collaboration. Also a keen understanding of the
BPM lifecycle, iterations, and BPM development strategy of a shared model is established.
What comes next?
The BPM development methodology should be the next to align with the BPM lifecycle and
strategy employed. Is it important to use one specific way or method to develop a process
application to align with strategy?
There is a best way methodology for process application development. It requires an
understanding of agile principles in order to take advantage of the shared model strategy. In
much the same way iterations during the BPM lifecycle phases allows for overall business process
change, a good process application methodology based on agile principles and iterations can help
capture change during the process application development cycles instead of at the end of the
development. Change can be captured during the playback sessions with a process owner and
different business stakeholders.
38
Notes:
To select the right tool to help develop a BPM process application, use this simple rule of thumb:
choose a tool that is data driven
This can be expressed at its simplest form in two steps:
Step 1: Model first describe the business process as a model for business validation and
then use the same model in a single integrated Authoring Environment. The model gets
expressed as data, not code.
Step 2: Run - at run-time, the data is read and executed
No compilations or transfers. This can even be done while the business process is executing
which gives a lot of freedom in handling in-flight tasks. This is the agility to make process
improvements with no disruption of end-user performance of process tasks. In addition to being
data driven, the right tool will also align with the strategy and methodology for development in
that it will allow for easy playback of process application status at any stage of process application
development.
39
Notes:
This is a review of the technology section for this topic.
40
Notes:
Topic 3: Essential capabilities found in the BPM lifecycle.
These capabilities are consistent in BPM and during the lifecycle phases: Design, Modeling,
Execution, and Optimization, one of more of these capabilities plays a role in insuring the business
process is managed properly.
41
Notes:
Everything in BPM begins with a business process model.
In Modeling, the business process is framed using a workflow diagram to reflect component
activities, the roles performing those activities, conditional branching and the sequencing of the
flow of work between activities.
To communicate this process model clearly within your organization, a notation standard must be
applied. Business Process Management Notation (BPMN) provides the standards so everyone
creates process models the same way and nothing is left to interpretation. The primary goal of
Business Process Management Notation (BPMN) is to provide a diagram standard that is readily
understood by all. From the business analysts and process owners that create the initial diagram
of the process, to the technical developers responsible for implementing the technology that will
create the process applications., Finally, to the business people who will manage and monitor the
business process for performance and improvements.
So you can see that the process model has a very thorough use in the BPM lifecycle
42
Notes:
Business Rules represents how business policies or practices are applied to a specific process
task or activity. For example, if a business rule is that a loan request that is above 25,000 dollars
can only be handled by senior level management, then the business process should have the
routing in place to send the loan application to the responsible party. This is a good place to
implement automation in your business process as well.
43
Notes:
Once a process model is developed and fully functional, a business process simulation can
help run the process model through a series of scenarios and resource allocation profiles. This
will enable you to test the process model under different conditions and evaluate the process
performance prior to full deployment. This is why in the BPM lifecycle, often times you will see
the Modeling phase called Modeling and Simulation.
44
Notes:
Metrics and Reports (also known as Analytics) Metrics provide the parameters by which to
measure process performance. Service Level Agreements (SLAs), Key Performance Indicators
(KPIs) and Level of Effort (LOEs) are metrics used in BPM. Reports or Analytics are process
performance measurements against those metrics. For example, a managers dashboard may
contain reports that evaluates their teams performance for a specified SLA or KPI. Analytics also
provide data for managers to make decisions to adjust process task resources if necessary.
45
Notes:
Human Interfaces in BPM, technology centered around getting the right task to the right person
at the right time is ultimately realized through the use of Human Interface displays. Whether it
be a system notification, a task portal display, or an activity-centered web-based application, it is
important to provide the data necessary to perform a task to the responsible parties to maintain
high levels of business process efficiency.
46
Notes:
System Integrations Business Processes are typically profiled as human-to-human, human-tosystem, and system-to-system interactions. An integration is how the business process queries
or updates external databases and applications (system) for either the human-to-system or
system-to-system profile. BPM applications can provide support for integrating web services and
databases through connectors. That means to effect a connection to the external system, select
a web service operation or database table, and instantly generate a component you can attach
to a process activity to execute that integration. System-to-system integrations can get very
complex in BPM, as the entire process is handled through a series of transactional systems that
are integrated. At that point, a integrated-centric business process will need advanced technology
sophistication not usually needed for the human-centric process.
47
Notes:
Topic 4: With BPM basics, it now time to get into more specifics about the BPM value proposition.
We will start with a look at common problems faced with business processes that are not
managed or managed incorrectly.
48
Notes:
Reliance on technology better said, an over reliance on technology to singularly bring about
process improvements. Automation cannot function well if the process itself is not evaluated
and modified to be the best business process for your organization. Bad processes that are
automated become automated bad processes.
49
Notes:
Poor process visibility perhaps the item that automation does well when it comes to processes
that are stuck. Task that are not completed, request not fully completed, and proper escalation
to a higher authority that is not routed correctly are all part of poor process visibility. Imagine
a business process accountable party, the person identified as the buck stops here process
role, does not know if there are stuck or broken business process tasks. The business process is
rendered ineffective at that point. This is why business process visibility is important and why it is
a common problem without BPM.
50
Notes:
Process heroes all organizations have the people who will strive to go above and beyond the call
of duty. Generally this is applause worthy, but a process hero will not bring about a repeatable
effective business process. It is much better to have a solid business process with visibility in
place than process heroes.
51
Notes:
Lack of process performance measurement without process performance measurements, the
process goals, or KPIs, cannot be realized. Also, process performance measurement allows us to
set the parameters to continually improve the business process to meet or exceed KPIs.
52
Notes:
Lack of process prioritization some process development is driven by most critical factors,
meaning there is a desire to handle the most broken of business processes the first time out.
This can be a problem area for BPM programs because it is not the most critical processes that
can bring about the most return for BPM initially, especially if the desired outcome is a switch to
a process driven culture within the organization. It is more efective to use caution and a sound
evaluation of process needs to designate first projects for your BPM program. Afterwards,
process prioritization can become part of the adoption and eventual implementation of a BPM
program.
53
Notes:
Informal task and communication some process tasks are deemed insignificant or too small
to include in a process analysis. Instead they are handled through an informal process task
completion and communication methods. All tasks are important and require the same attention
in successful BPM programs.
54
Notes:
What benefits would a properly aligned BPM (organization, processes, people, and technology)
yield for a company?
Business processes that are visible, efficient, effective, and agile. Depending on the process,
these different benefits will be realized in different proportions and in different iteration cycles.
55
Notes:
When BPM is successfully implemented and functioning well within an organization, business
processes no longer suffer from poor visibility. Visibility allows the company to react in realtime to process problems that may occur. This will help with customer satisfaction and keep
processes from relying on process heroes. Visibility is always centered on the business process
performance and this allows for measurement to realize process improvement.
56
Notes:
It is not unusual for efficiency benefits to happen when you first deploy BPM. With the proper
know how to fix process problems and the appropriately placed automation, processes that were
wasteful due to manual efforts, poor hand-offs between departments and an inability to monitor
overall progress start to display efficiency gains immediately. Efficiency is usually expressed in
BPM in terms of time saved to complete process tasks.
Example:
Elimination of 80% of the manual work previously required to route invoice exceptions to the
appropriate resolution teams.
57
Notes:
Process improvement typical in BPM means that organizations will constantly seek to make their
processes more effective. Effectiveness is typically expressed in terms of handling exceptions
better and faster or making better decisions. Another aspect of effectiveness is the process
performance consistency as opposed to the non-repeatable process hero method. The largest
gains in BPM programs are realized in this area.
Example:
Customer satisfaction improvement to 92% based on proactive tasks that help ensure the home
loan process executes better and faster
58
Notes:
The ability for a business process to change quickly is essential and this can be realized in properly
implemented BPM programs. It is not unusual for an organization to change a business process
often, sometimes 4-7 times a year. Drivers for these changes can come from external sources,
such as regulatory entities. Internal sources are more commonplace, as organizations seek to
take advantage of new business opportunities or to support partner and customer needs better.
Example:
Change customs related processes after September 11, 2001 within 90 days to comply with new
federal regulations for better shipping visibility.
59
Notes:
Has the question been answered: Why BPM?
Summary review of the BPM value proposition:
Applications for complex processes for humans and systems
Orchestration across multiple departments and systems
Real-time performance management and visibility
Keep pace with changing business requirements
Collaborate effectively between Business and IT
Make process a source of competitive advantage
All of which leads to a business that has continuous process improvement and is embracing
change rather than running from it when it comes to business processes.
60
Notes:
61
Notes:
63
Notes:
Having completed this unit, you should be able to:
List and describe the components of BPM
Define the importance of each BPM component and their interdependencies
Explain the BPM value proposition
List the BPM essentials
64
Notes:
65
Unit 2: Building
a process
driven culture
This unit describes how to tell what a process driven culture looks
like, how to effect change towards a process driven culture, and
expectations that can be realized once a process driven culture is
functioning well within your organization.
Organizations can fail to recognize that Business Process
Management, when it is most effective, is about changing more than
business processes. BPM is also about changing the way to think
about process improvement. The focus shifts, the methodologies
change, and the decisions to enable a change in culture becomes
a real proposition for any organization. This does not have to be
a radical change, that is why this unit covers the key items to pay
attention to in order to make this shift easier to manage.
Objectives
Notes:
Describe a process driven culture and how it differs from other

organizational drivers
List the important factors that solidify a process driven culture in

an organization
Explain the positive outcomes with a process driven culture
Topics
What is a process driven culture?
Center of competency
Governance
Change management
Training, education, and enablement
Outcomes
67
Notes:
Topic 1: What is a process driven culture?
68
Notes:
How an organization thinks about BPM plays a big part on how successful the program will
be. Relegating BPM to departmental initiatives will not yield much benefits, especially if
Business Process Management is chartered with productivity and revenue gains throughout the
organization.
Many business processes cross departmental lines, so BPM is best served when the organization
moves towards a process driven culture in all facets of the business. This requires a shift in
thinking and approaches to deliver and maintain BPM across the entire company.
69
Notes:
When presented with a management mandate, organizations are wise to turn to established core
competencies to execute against that mandate. Solution core competencies are driven by an
organizations thinking, or better said what is believed to be the way to provide effective solutions
for business needs. In a traditional system development lifecycle (SDLC), the focus is the
system, so that becomes the driver for a solution.
So is it necessary to change the organizational thinking and solution core competencies when
talking about a shift to a process driven culture?
71
Notes:
The answer is: ...not entirely.
It is better to say that what is needed is to amplify organizational thinking or shift the focus of the
thinking so that the process is center at all times. Process first, solution second.
In short, BPM is process focused which translates well to process-driven. Going back to the BPM
Lifecycle, notice that BPM requires the focus to be on the process. BPM provides an approach
and platform for the change required for improving the process throughout every stage of the
lifecycle but at all times the process takes precedent above the system. The system then should
work in concert with that change management of the process and not as a solution on to itself.
72
Notes:
It is very important to develop BPM solutions based on core competencies, but it is also
important to transform core competencies from a traditional Functionally-Driven culture to a
Process-Driven culture. This chart from Janelle Hill, lead BPM analyst at Gartner, speaks well to
the shift required.
Many of the BPM concepts discovered earlier can now be seen clearly in terms of an
organizational cultural shift. For example, how identification of responsible roles based on the
process will lead to productivity gains is now clearer. Organizationally, this would also lead
to process-centric views of areas to support with training and education so, as an example,
customer service is handled effectively.
Ultimately, the move is from a vertical / stovepipe orientation to a horizontal / cross-functional
orientation when the organization is process-driven. The move is also from individuals to a team
concept when it comes to BPM.
73
Notes:
Of course, this organizational transformation doesnt happen overnight, it is truly a journey.
What is the BPM Journey?
For a shift to BPM organizationally, it begins with validation that BPM is a viable solution for
business goals and needs.
Prove BPM on your terms. Most companies do well to validate on the first relevant process
implementation. Some extend the validation to 1 to 2 additional process implementations
because of some struggle to comfort to the new way of thinking in the company or process
complexities hits some unforeseen barriers. While yet others will use a pilot project to
achieve a quick win in terms of proving worth to the organization.
Once you achieve validation that BPM works, then the movement to adopt BPM begins.
Scale BPM into your core business/technology operations. This is when you start to see
BPM become that execution engine to answer upper management mandates and new
business goals. It is also when the center of excellence focus takes shape.
In the end, you want to get to Transformation
74
BPM becomes a core part of the way you drive and align business direction . It becomes
not only the solution, but a strategic engine for your organization.
Notes:
Example from Janelle Hill, lead BPM analyst with Gartner, of a roadmap to organizational BPM
maturity. You start to see a little more detail added to the BPM Journey, but the goal is the same,
ramp towards BPM maturity instead of expecting an overnight shift in culture in the organization.
75
Notes:
Obviously with a transformation to a process driven culture and BPM becoming a strategic engine
for an organization, the need to elevate BPM as a center of competency becomes a reality. In
building a BPM center of competency, also called a center of excellence, the maturity level of your
BPM initiative provides the challenges you will face.
With that, the focus is on three key areas for a BPM center of competency in this topic:
76
Governance
Change Management
Training, Education, and Enablement
Notes:
Process improvement is a key BPM value. Succeeding with process improvement requires BPM
teams to have the core competencies that allows them to connect strategy to action. This is
where these core competencies eventually become the BPM Center of Competency.
The strategy is often as follows:
Setting Direction
What are our goals and how are we working to achieve them?
What are the high priority projects?
Have we documented and communicated what we are doing?
Are we confident we are working on the biggest problems?
Controlling Work
Do we have end to end visibility and control over the key processes?
Can we meet our goals or do we need a different approach?
Is everyone clear on their role and objectives?
Improving Performance
What problems are keeping us from achieving goals?
Is everyone working on the right priority items?
Have we eliminated all the waste in our work?
77
Notes:
Knowing that a BPM center of competency is desired, as an organization start to ramp towards
BPM program maturity, the senior management team will evaluate BPM for center of excellence
status. They will want to measure cost against possible gains, a standard ROI proposition. To
effectively measure this proposition, senior management will look at these typical core functional
areas:
78
Resource management what will it take to effectively maintain a BPM center of

excellence?
Skills and knowledge management what will will need to train employees and capture
best practices?
Marketing How will we communicate the BPM goals and values desired by the
organization?
Assets what is our financial investment? What will assets will we gain?
Development, Deployment and Governance how do we maintain a high standard for this
center of excellence?
Support and services what internal and external support will we need?
Notes:
About Center of Competency
BPM is no different than any other organization core competency in that are elements that
comprise the center of competency. These elements can be framed into three main areas:
Planning and Demand measurement
Execution and Measurement
Improvement and Maintenance
Notice that these areas map well against the BPM methodology. So the expectation for any
organization that adopts a BPM program is that these elements are in place and functioning well
throughout the phases of each and every BPM project.
79
Notes:
So how are these elements put in place?
Typically, the elements of the BPM center of competency come from various influences. For
instance, Governance in the planning and demand management for BPM can be highly influenced
by establish IT Governance. Another example is how Change Management in the execution and
measurement category can also be influenced by the IT change management standards.
80
Notes:
Here is a higher level view of the BPM center of competency elements slotted into categories.
81
Notes:
In review, as the BPM program matures in terms of the amount of projects in production, so
should the move towards a center of excellence be undertaken in both design and execution. A
successful BPM program operates as the center of excellence for corporate initiatives and will
have the components in place to not only execute against the corporate strategy but also to
sustain business value for each and every business process.
82
Notes:
Topic 2 - section 1: Governance
83
Notes:
Governance is essential in ensuring a consistent alignment with the organizational objectives, an
adoption of BPM, and the eventual process driven culture transformation. As you migrate through
the phases of BPM program maturity, the responsible parties for BPM governance are amended.
Initially, at the validation phase, there are project development success goals, so overall BPM
governance relies on the IT group with support from the business. This is, however, when the
partnership begins to take shape, or collaboration, between Business and IT when it comes to
BPM project development. If the Business governs the process improvement needs and not IT,
then what is typically expected by Business in terms of process improvements and how does IT
manage the changes needed during project development?
When an organization understands the business process architecture needs, then the overlap of
governance between Business and IT can be realized.
84
Notes:
As BPM matures into the adoption phase, the goals change and now it is about overall process
success. This means the Business and IT groups will be involved in continuous process
improvements through process performance measurements and BPM lifecycle iterations.
Process improvement is why there is a need for both Business and IT to be responsible for the
BPM governance. Business must analyze the process performance data and realize where
improvements can be achieved. Business can also alter business goals and service level
agreements to present new opportunities for productivity and revenue gains. IT can manage
the iterations of the processes so that the goals can be realized without need to start over from
scratch on any of the projects in development.
This is when the collaboration standards are solidified for BPM project development and program
management and BPM governance becomes a center of excellence.
85
Notes:
Of course, once an organization reaches BPM center of excellence status, the areas of
responsibility for BPM governance increase for both Business and IT. Once an organization is
transformed to a process-driven culture, it is about governance of the overall BPM program and
not just on a per project basis. For example, at this stage an organization will want to insure BPM
values and streatgies are effectively governed and maintained so they can be marketed to the
company overall.
86
Notes:
Overall, governance is a partnership between Business and IT when it comes to successful BPM
programs. For BPM governance, an organization must have a comprehensive view of what parts
need to work effectively while keeping in mind the larger picture of an enterprise architecture and
BPM as a center of excellence.
BPM Governance then is about balance, especially in terms of a business process architecture,
and not conformity.
Some good checks and balances to remember:
Proportionality is incredibly important
Not every process project is the same, yet most IT procedures dont discriminate between
how the systems or processes impact the organization
The process certainly can be represented in a system, but that does not mean that this is
a clear demarcation that IT solely owns the BPM governance
IT and business will need to understand and agree what constitutes business value and
equate that with the need to maintain compliance in its BPM program
87
Notes:
Topic 2 - section 2: Change management
88
Notes:
About change management
Business process improvement is desired in a successful BPM program. As such, businesses
should accept that change is inevitable because of process improvement needs. Because of
that, all members of an organization are affected by change. It reaches every member of an
organization not just the BPM project development team. An end-user of a process application
or a customer of a process decision will experience delays or disruption by change that needs to
be made to a business process. That is why it is important to establish change management as a
core competency and part of the BPM center of excellence.
The most effective way to handle change management is to plan for it. This section looks at
change types, change management criteria and drivers
89
Notes:
When talking about change management, two types of change within the organization are
expected:
90
Business level change businesses seek to continue to improve their revenue and
profitability. This requires constant and focused change on how to do business. In BPM,
change management is about helping usher in business related changes as noted in the
chart on the left.
Cultural level change Change management cannot ignore the cultural effect BPM can
have on the organization. It is vital for a process-driven culture. If there is improvement
of a process with cultural change in mind, then the outcomes shown on the right can be
realized.
Notes:
A formula for results of effective change
Quality certainly is something strived for at the business level. However, 85% of quality efforts
fail from lack of attention to the people and cultural side of change, or the Acceptance A. The
most comprehensive change happens when attention is given equally to both the business and
the cultural level of change management. Include both business and cultural needs in BPM
program change management.
A BPM program will typically have a systematic way to measure changes for both business and
cultural positive outcomes. Change management tools are used by BPM Analyst who want to
qualify change so that it is thoroughly validated.
91
Notes:
By now, it is apparent that business processes are dynamic and change is inevitable. Some
consider business processes as having no actual development finish line, only a continual process
improvement lifecycle.
The need for change management in BPM program is often driven by the following:
92
Organizational change happens because the process requirements change or business

goals are modified
Regulatory government regulations that govern business ethics will change and a
business must be able to keep up with these changes
Geographic a process may have a different set of business rules or goals based on
regions or even country
Competitive businesses want to keep up with market trends and competitors
Voice of the Customer - Most processes need change over time as supplier, process task
responsible roles, and customer demands change
Notes:
What are some of the key criteria for change management in a BPM project?
A BPM project has strategic and critical importance a need-to-do, not just a nice-to-do
A BPM project is related to one or more corporate priorities
A BPM project that yields a significant, measurable pay-off
A BPM project brings together leaders, managers or process owners from multiple
functions with multiple perspectives
An obvious need to re-commit, jump start or re-align sponsors around key BPM projects
93
Notes:
Properly developed BPM projects should be agile enough to handle change management needs.
This is why the strategy of a shared model exist, the right tool to handle development and change
equally is improtant, and the right BPM and project development methodology to set the proper
groundwork play a part for proper change management. Business process agility in BPM comes
by way of properly aligning these items in a development cycle.
Unfortunately, far too often there is a consistent mismatch between final process application
functionality and the business need. That increases the difficulty in managing change quickly.
What is important to know is that change management practiced early in the validation phase
prepares the organization for increased change management needs at the BPM program adoption
phase. By the time you reach full transformation, change management is understood and
embraced by everyone involved beyond just the BPM project development teams.
94
Notes:
Topic 2 - section 3: Training, Education, and Enablement
95
Notes:
BPM insures there is a good definition of the responsible roles in a business process and
also clearly defines the duties to perform. These definitions help with business process task
completions. Adding automation of task notifications, business rules and proper routing, there
is avoidance of unfortunate situations where a customer must wait while employees search for
the responsible role to handle inquiries and request. Training employees on business process
roles and responsibilities helps with the cultural benefits as much as automation and the process
application does with the business change.
Training is focused on providing employees with the appropriate task management skills and also
change attitudes about areas of responsibility. Training combined with marketing BPM as a center
of excellence helps educate and enable your workforce to embrace the values and business goals
that the company wishes to achieve.
Not supporting employees with adequate training and support is often a common mistake.
Without training, employees may think that BPM is actually a company strategy to reduce the
workforce. End users of BPM process applications may look for ways to sabotage the program if
they understand this initiative erroneously.
96
Notes:
Enablement
BPM project development teams require different roles to work in concert to develop the
necessary automated system-to-system service oriented application builds or the human-tohuman or human-to-system process applications. BPM project team roles have need of training
and enablement to think process first, solution second. Enablement, much like some of the other
aspects of a BPM program, happens in an incremental manner.
At project one, training centers around learning how to use the specific BPM tool or suite
of tools and also BPM methodology and strategies. Remember that IT has the lion share of
the governance responsibilities at this point, so understanding how to manage BPM project
development with effective change management and process improvement is very important.
That is why BPM methodology is as important a training vehicle as BPM tool training. As an
organization ramps toward center of excellence status, selection of the trained individuals in both
tool and methodology to mentor other BPM teams in your organization is undertaken.
97
Notes:
Topic 3: Outcomes an organization should expect with a process driven culture.
98
Notes:
Customers are both internal and external to an organization. A satisfied internal customer is apt
to be more productive and focused on task and duties when they consume the decision from
a internal business process. Satisfied external customers become repeat customers and if
they are really impressed by the customer service they can be strong market advocates for the
organization. Loyalty and advocacy from external customers are a big win for a company.
99
Notes:
Employees put in the responsible role for a business process task become advocates for BPM.
This outcome is vital in that it helps with the retention of important business assets: skilled and
talented workers. A best practice in BPM is to celebrate employee achievements as often as
necessary to support the ideal that the job isnt about being a process hero, but a good BPM team
member.
100
Notes:
Because of the positive outcomes in customer satisfaction, whether internal or external,
and employee satisfaction for a job well done, the organization will realize both financial and
productivity gains that can be directly attributed to the visible, effective, efficient, and agile BPM
program.
101
Notes:
103
Notes:
105
Notes:
Having completed this unit, you should be able to:
106
Describe a process driven culture and how it differs from other organizational drivers
List the important factors that solidify a process driven culture in an organization
Explain the positive outcomes with a process driven culture
Notes:
107
Unit 3:
Leveraging
BPM delivery
best practices
This unit is about the best practices for BPM delivery. Good project
development is the cornerstone of process change management.
BPM is about being agile and realizing process improvements without
radical down time for process applications. Also key is the strategies
employed to maintain agility in development, shorter development
cycles, increased productivity, quicker time to production, and
greater quality of the end products. A willingness to rethink old
methodologies opens all these possibilities to be realized.
Objectives
Identify and qualify BPM opportunities
Organize and prioritize BPM opportunities
List and describe a BPM project profile
Employ BPM project delivery standards and best practices
Topics
Notes:
Where do I begin?
Project one versus BPM program
BPM project success
109
Notes:
Topic 1: Where do I begin?
This topic covers information on where to begin with a BPM initiative. As the BPM program
matures, some project development best practices will change slightly, however in general, they
will serve you well on your road to BPM success.
110
Notes:
Whether by way of an existing effort or through an effort undertaken at the beginning of a BPM
initiative, it is important to have all processes in an organization documented. This documentation
effort is not meant to solve the processes problems but rather to qualify BPM opportunities.
Why is qualifying the BPM opportunities important?
In previous discussions of the BPM journey, there was the intial validation phase for BPM within
an organization. This is usually a very visible BPM initiative and because of that it is important to
qualify the BPM opportunities from your list of business processes.
111
Notes:
During the documentation effort, an analysis team will review key items in each process to qualify
the BPM opportunities. These key items revolve around the following:
Gaps in communication and handoffs leading to poor process visibility
Identifying responsible parties or entities for process task completions
Technology or lack thereof for completing a business process task in an quick and efficient
manner
These items are usually referred to as pain points for a business process.
112
Notes:
As the BPM opportunities are analyzed, notice that there may be some common problems or
patterns. These patterns give an indication of the specific pain points in the process. There are
a variety of patterns, so be sure that as many of them as possible are captured by asking the
necessary questions about the processes. Here are some example patterns. Any of these can
be addressed with BPM.
113
Notes:
The qualification process should include creating a priority scale for what business process is the
best candidate for project one.
Project one focuses on the validation phase of your BPM journey towards a program adoption, so
there are obviously factors for moving one process to the top of the list over others. Many times,
an organization will want to place the more problematic or critical business processes to the top of
the list. For example, what if the most critical business process to improve with a BPM initiative
is a manufacturing process. However, the manufacturing business process may also be the
most complex process to shift from its current state to an efficient process, complete with new
technology and automation.
Couple the complexity of the process itself and the shift in culture discussed earlier and it
becomes evident that it may not be prudent as the project one canidate. Not that it is not
important to tackle this business process improvement, but that the priority for your organization
to begin with will be to get your organizational culture used to a BPM initiative and reach a
visible success for the validation phase before you tackle the more complex of business process
improvement needs.
114
Notes:
As the BPM Program matures and shifts to adoption and ultimately the BPM transformation
phase, the highest priority opportunity will continue to be identified as part of an analysis
inventory. If there is no inventory necessary, then the organization will identify the priority based
on facts and organizational needs. In either case, the analysis team would use tools such as a
priority matrix and an Impact/Effort chart to hone in on the process that would require the most
attention.
Here is an example of an Order to Cash Improvement project prioritization matrix with an
Impact and Effort chart.
115
Notes:
Topic 2: Project one versus BPM program
116
Notes:
With a look at the BPM journey chart, the shifts in objectives for each phase are clear. From
the validation to the adoption phase, there is a shift from proving the BPM strategies and
methodology to mission critical business process management. Many organization want to get to
the BPM adoption level as soon as possible in order to solve inherent business process problems.
So this level of the BPM program is often the desired goal for organizations from stakeholders to
those who execute against the stakeholder vision.
Where an organization starts may be a project but where they desire to be is at program level.
117
Notes:
The basic difference between a project and a program is that number of projects involved.
Obviously, project development involves just one project and the initial phase in the BPM journey
takes full advantage of that to validate the BPM development strategy and the methodology,
plus start to shift the organizational culture towards the process driven focus. Depending on
definitions used, either the development of one project to begin with or when multiple projects
are developed will be where an organization would consider the start of the actual BPM program.
In some respects, the beginning of project one could be considered the beginning of the BPM
program or at minimum the beginning of the vital ramping towards the BPM program desired.
So at project one, the effort becomes one of developing the process application and in addition,
the training and education efforts focused on product training and infrastructure involvement
in terms of installation and configuration of the process development tool or suite of tools.
The results of the project one development cycle lessons learned can be used to defined the
strategies for program management of multiple projects. At the program level, the efforts
in training and education plus infrastructure start to increase as well. At the program level,
mentoring of key personnel becomes necessary to begin the move towards the BPM center of
excellence.
118
Notes:
Remember, business processes are not stagnant and BPM is meant to embrace the dynamic
changes in processes. So it is important to note that the completion of the project development
for project one deals only with the first iterations of the process implementation, primarily in
terms of optimization. Process improvement is a desired goal of any successful BPM initiative,
so built into a BPM program is the ability to analyze process performance data. This allows a
business to document the process application improvement needs and then move towards the
next round of iterations. The focus should be to continue to iterate to keep up with the demands
of the internal and external customers.
119
Notes:
Project development in an IT group may be handled in many different ways or using a legacy set of
strategies and management for the development cycle. What is important to develop early on is
the syncopation of the project development strategy with the BPM methodology that will yield the
visibility, efficiency, effectiveness, and agility benefits.
So BPM project development is not a proposition of which came first in terms of development
strategy, but what works best.
For BPM, you must have a design to evaluate the business process and the pain points. There
must be a model to communicate the process clearly to everyone in the organization to establish
what the process should be when development is completed. Simulation during the modeling
phase will give you the ability to validate the process improvements that are going to be realized
and also to measure process gains against the SLAs and KPIs. Execution or implementation of
the process model into a process application must be an extension of the work completed in the
previous phases. And lastly, any project development strategies must include the optimization of
the process application, and that will require testing and validation that we have the process we
expected well in advance in the design phase.
120
Notes:
So who handles the BPM project development?
The unique BPM Methodology lifecycle and the components of a BPM project require a specific
set of project roles.
Hands-on solution team:
Process Owner - Person who knows everything about the process
Program Manager/Project Lead - Person responsible for the projects development and
completion success
BPM Analyst Person or team responsible for the process analysis, design and process
improvement goals and measurement
BPM Developer/Process Person or team responsible for the development of the

process model and implementation of process application
BPM Developer/Integrations Person or team responsible for the system integrations

and automated business process transactions
Peripheral:
Process Sponsor - Responsible for establishing the project goals and scope, securing
organizational support and resources, and ensuring alignment with organizational business
goals (consulted)
Subject Matter Experts - Those with knowledge of specific process task, resources, or
systems (consulted)
121
Notes:
Here is a chart that shows in details both the responsibilities and the skill required to work on a
BPM specific project. The important thing to note from this chart is that the responsibilities and
skills are all closely aligned with the process needs. Notice that the importance is a processcentric, process-driven focus before a solution, system, or functional-driven focus.
122
Notes:
With a BPM program, the team or roles involved grows. This is important to remember for both
project-based meetings and program related discussions during development.
123
Notes:
Topic 3: BPM project success
124
Notes:
Since BPM is unique in terms of the phases that are inherent in the overall methodology, the first
step is to conceptualize the work needed to be performed. This encompasses the deployment of
the business process application as well as the infrastructure work. Note that some work may be
performed in parallel and some work is iterative in nature.
125
Notes:
Is it prudent to apply standard IT development practices to the BPM project development?
Business changes quickly and as it does, the standard IT application development method
may struggle to keep pace. Often traditional project development is designed to fit into the
organization systems rather than the systems adapting to the changing business circumstances.
The pace of change in business has accelerated, while the long development cycles continue with
equally long upgrade cycles. Each handoff within the traditional development cycle is handled like
a bucket brigade trying to put our a fire. BPM requires planned activities that are proactive and not
reactive to change.
126
Notes:
In the end, a development team will find itself managing code instead of the process. This goes
contrary to the strategy of a shared model approach, agile development, and the focus on the
process first and solution second. It is not advisable to use the traditional IT project development
methods namely because of the dynamic nature of BPM. Also missing from traditional
development is the all important process performance measurements against desired goals.
Remember, BPM requires change management to be a proactive planned activity in project
development as much as it does in program management.
127
Notes:
In contrast to the traditional IT application development strategies stands the phased BPM
project development approach that closely aligns to the overall BPM methodology. The project
development phases are:
Definition allow for a phase to define the process, analyze the process for
improvements, and set the process performance measurement criteria
Development Using a three playback system or development iterations, prepare the

process application for deployment
Test monitor the process application on how it performs against expected gains at in a
production platform end-user environment
129
Notes:
When going through the development of the project, remember the following items:
Change is inevitable, so plan for it!
The process model can change as you iterate through the development cycle
Requirements will change as you implement
Priorities will shift
Collaboration is the vital
IT and Business must partner during the definition and development phases in order to
have a focused validation of the process application
Incremental improvements is key
130
Incremental process improvement is more agile than desiring a big bang ROI. You may
never see a 1.1 project release if there is a push for an all-in 1.0.
Incremental releases yield much higher value for organizations
Notes:
Playbacks within the development phase allow for the incremental development of the process
application. The use of playbacks sets goals for planned work at each stage within this phase
of development. When the development team feels they have met the goals for the playback
stage, then a Playback session is held to review the accomplishments with the business group,
stakeholders, and development team. Because of the incremental nature of the development, the
goals of each Playback stage is to reach certain process application functionality to the satisfaction
of all that the product matches the requirements. This provides early visibility and input for the
business group on the process application functionality. Often times, the perspective of the
business group early on will benefit development because they will quickly identify pain points
that may arise well before the final product is implemented.
It is also common for certain requirements to not be completed in a given Playback stage. Each
requirement that is not completed needs to be dealt with in terms of its value and prioritization.
The development team can either allocate additional resources to complete the stage, apportion
the requirement to a later release, or apportion another requirements in its place in order to
complete. Playbacks afford the project teams to make these types of development decisions
along with the business group sooner rather than later.
There also may be agreement that the requirements were not appropriate or complete and a
new iteration based on new or revised requirements is designed, developed, and tested for a
new Playback session. Once completed, then the close out of the Playback is agreed upon and
the development work moves to the next Playback stage and a new set of requirements in the
development phase.
131
Notes:
The basic concept of agile in the BPM project development is a strategy that uses the shared
model, collaborative development between Business and IT and an iterative deployment of the
process application. This means a faster time to value. The ability to shift direction during the
development cycle is key to reach the ultimate desired BPM target. So a project development
methodology that uses agile and iterations within the development cycle will provide for the
appropriate level of project requirement adjustments for quicker deployment and an on-target
project.
132
Notes:
Here is a quick look at how the project team roles function within the three stage project
development cycle. Notice the goals or requirements listed for each Playback stage. Also that a
first iteration of the BPM process application takes about 13 weeks to deploy. This is what a good
project development strategy can provide.
133
Notes:
There are multiple facets to testing a project build during development. The most common tests
are conducted by the developers during the Playback stages. These test focus on functional
requirements at the particular Playback stage, such as user interface functionality, data flow,
integration connections, and metric and reports functionality. Using a shared model approach
means the tool chosen to develop the application should provide a method to test the incremental
development easily through a peer-topeer method.
For end of pre-deployment testing, a more robust test of the process application is necessary. The
focus shifts from the incremental functionality goals to a fully functional application in a end-user
environment production platform.
134
Notes:
BPM project deployment is not relegated to the first iteration of the process application. Multiple
solutions may have been iterated based on optimization efforts before a final deploy is considered
for release. This does not mean that changes that come about by way of business goal changes
or other factors cannot be implemented. A process application developed with the sound
strategies in place will be agile enough to accept change without much duress and downtime for
the end-user.
135
Notes:
The shelf life of the deployed process application provides historical process performance data
that can be collected and used to identify trends, bottlenecks, and problem areas. This allows for
continuous process improvement, a key objective in BPM. So monitoring and improvement needs
to be planned as part of project governance and overall program management. Processes can be
designed to monitor themselves, but only people who have the responsibility can decide what use
to make of that information.
BPM project development may end when everything is deployed and a project retrospective
is completed for lessons learned, but to deliver BPM value in terms of visibility, efficiency,
effectiveness, and agility, the BPM program must be designed to have a project live on to
implement on-going process improvement.
136
Notes:
137
Notes:
139
Notes:
Having completed this course, you should be able to:
140
Identify and qualify BPM opportunities
Organize and prioritize BPM opportunities
List and describe a BPM project profile
Employ BPM project delivery standards and best practices
Notes:
141
Appendix
Bibliography
For more BPM reading
Articles that explore topics discussed in this course are listed below. They
are divided among sub-topics that represent the key messages of the
course. If any difculties are experienced locating the articles, please contact
WebSphere Lombardi Education: lombardi_education@us.ibm.com
Business Process Management: The IT Organizations Moment of

Truth, Michael Melenovsky, Gartner Research Note, April 24, 2006
Business Process Managements Success Hinges on Business-Led

Initiatives, Michael Melenovsky, Gartner Research Note, July 26,
2005
Business Process Improvement Role Overview, Janelle Hill,

Gartner Research Note, March 16, 2006
Three Examples of BPM Worst Practices and How to Avoid Them,

Elise Olding, Gartner Research Note, December 3, 2007
Change Champions, Jeffrey Berk, Internal Auditor, April 2006
Do You Have A Business-Oriented Architecture?, Rod Favaron,

BPM Primetime, 2006
How to Begin BPM Efforts, Ken Vollmer, Forrester Research Best

Practices, September 6, 2005
BPM Best Practices for Process Professionals, Colin Teubner,

Forrester Research Best Practices, January 12, 2007
Recognizing Process Opportunities & BPM Value
Making the Case for BPM: A Benets Checklist, Lombardi White

Paper
Distinguishing Business Process Management from Business

Process Re-engineering, Janelle Hill, Gartner Research Note,
December 28, 2005
Justifying BPM Projects, Jim Sinur, Gartner Research Note,

November 2004
The Value of Business Process Management, John Pyke,

Management Services, Spring 2005
143
Bibliography
WebSphere Lombardi Getting Started with BPM: An

Introduction to Business Process Management
Getting Started with BPM, Part 1: Assessing Readiness,

Elise Olding and Bill Rosser, October 2007
Getting Started with BPM, Part 2: Laying the Groundwork to

Launch a BPM Initiative, Elise Olding and Bill Rosser, October
2007
Getting Started with BPM, Part 3: Understanding Critical

Success Factors, Elise Olding and Bill Rosser, October 2007
BPM and Related Technologies
144
Appendix
An Introduction to BPM, David McGoveran, BPM.com, March

22, 2005
ABC: An Introduction to Business Process Management

(BPM), Mark Cooper and Paul Patterson, CIO Magazine, April
27, 2007
Findings for Next-Generation BPM, Michael Melenovsky, Jim

Sinur & Matt Light, Gartner Research Note, April 11, 2006
What is the Difference Between Workflow Engines and BPM

Suites?, Lombardi White Paper
A Business-Oriented Architecture: Combining BPM and SOA

for Competitive Advantage, Lombardi White Paper
Failure to Deport Prisoners Shows Cost of a Broken Process,

David Flint, Gartner Research Note, May 4, 2006.
Moving the Sidewalks, Mark Cooper, CIO Magazine, May 15,

2006
SpectraSite Showcases a Towering Success In Business

Process Management, Connie Moore, Forrester Research
Best Practices, November 21, 2005
Lombardi Powers Aflac Service-Related BPM Effort,

Insurance and Technology, January 2008
What does BPM actually mean?, Peter Fingar, http://www.

bpm.com/what-does-bpm-actually-mean.html
Understanding BPMN: A Primer, Derek Miers, http://www.

bpm.com/understanding-bpmn.html
Bibliography
Market Briefs
BPMS Revenue To Reach $6.3 Billion By 2011, Forrester

Research, July 30, 2007
Case Studies
Business Process Management: The Next Evolution in

Managing Workers Compensation, Nathan Dintenfass, Risk
Management Magazine, October 2005
Case Study: BPM Organizational Staffing and Structure,

Michael Melenovsky, Gartner Research Note, February 3,
2006
Online References
Object Management Group: http://omg.org/
Business Process Managment: http://www.bpm.com/
BPM Institute: A peer to peer exchange: http://www.

bpminstitute.org/
145

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Starting and Succeeding

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Lombardi is a trademark or registered trademark of Lombardi Software, Inc., an IBM Company.

March 2011 edition

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Unit 1: Understanding the BPM value proposition

Project one versus BPM program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BPM project success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

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Describe and explain the BPM value proposition

Employ process-driven culture standards

Employ BPM project delivery best practices for a successful program

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List and describe the components of BPM

Define the importance of each BPM component

Explain the BPM value proposition

List the BPM essentials

The value of BPM

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Financial and productivity gains

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Governance who is in control of the process needs and improvements?

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(input) A call with a problem on our bill (information)

(set of activities) - Things happen (process)

(output) - All we really care about is the refund (decision rendered)