This document discusses strategies for improving business performance through business process management (BPM). It describes how establishing two "virtuous circles" of continuous process improvement and management can help organizations more effectively execute strategy and close performance gaps. The first circle involves process owners continuously measuring and responding to process performance issues. The second circle involves process improvement projects that identify and implement changes to resolve performance issues. Together, these circles create ongoing momentum for improvement and innovation.

1. 2 Virtuous Circles
transforming performance improvement

2. © Roger Tregear, Leonardo Consulting 2014 2
2 Virtuous Circles
Copyright Notice
Copyright © 2014 Leonardo Consulting. All rights reserved.
This work is licensed under a Creative Commons Attribution-
NonCommercial-ShareAlike 4.0 International Licence

3. © Roger Tregear, Leonardo Consulting 2014 3
2 Virtuous Circles
Leonardo BPM Curriculum BPM Consulting Services
BPM Maturity assessment
Process Improvement projects
Process Architecture development
7 Enablers Rollout
Office of BPM development
Process culture development
Executive BPM coaching
Process practitioner coaching
Process performance analysis
Process governance design
Process modeling management
Process automation
BPM capability development
Measuring Processes
3 days of valuable insights into, and practical tools
for, the discovery, definition and management of
effective process performance measures
Improving Processes
This 3-day course delivers practical advice and
tools you can use immediately to generate great
process change ideas. Stop relying on chance.
Process Modelling Excellence
This 1-day, tool-neutral seminar is a breakthrough
experience for modellers and those who manage
them. It will improve your Return on Modelling.
BPTrends Professional Certificate
Over 5 days the Professional Certificate program
teaches a practical approach to analysing,
measuring and improving process performance.
BPTrends Enterprise Certificate
Beyond process improvement, the Enterprise
Certificate 5-day program teaches how to build
and maintain a truly process-centric organization.
better practices
Derivation
New
Process
Utilisation
potential practices
Enhancement
current practices
Innovation
new practices
analytical
creative

4. © Roger Tregear, Leonardo Consulting 2014 4
2 Virtuous Circles

5. © Roger Tregear, Leonardo Consulting 2014 5
2 Virtuous Circles
Failure to Execute
70% myth?
The Economist suggests 44%*
Strategy execution is: complex, difficult,
demanding, conflicts with daily operations
Disconnect with day-to-day reality
Top-down fades out
Result: frustration, cynicism, change
fatigue, missed opportunities
* Why Good Strategies Fail: Lessons for the C-Suite. 2013. The Economist Intelligence Unit Limited

6. © Roger Tregear, Leonardo Consulting 2014 6
2 Virtuous Circles

7. © Roger Tregear, Leonardo Consulting 2014 7
2 Virtuous Circles
Process Management Failure
Not embedded in daily management
No unifying system
No compelling reason
Focus on modeling and IT rather than
management and transformation
Lack vision and ambitious targets
Bottom-up fades out
Result: frustration, cynicism, change fatigue,
missed opportunities

8. The Gray Zone
© Roger Tregear, Leonardo Consulting 2014 8
2 Virtuous Circles
Strategy
Execution
Process
Management
The
Gray
Zone

9. © Roger Tregear, Leonardo Consulting 2014 9
2 Virtuous Circles
What would success look like?
Strategy-driven, process-centric
Focused on value delivery
Embedded improvement culture
Proactive + responsive

10. © Roger Tregear, Leonardo Consulting 2014 10
2 Virtuous Circles
M is for Management
Problems +
Opportunities

11. © Roger Tregear, Leonardo Consulting 2014 11
2 Virtuous Circles
The ‘M’ in BPM
stands for
‘Management’
Functional
Organization
Process
Organization
Managing resources
Creating,
accumulating,
delivering
value

12. © Roger Tregear, Leonardo Consulting 2014 12
2 Virtuous Circles
Delight
Dissatisfaction
Expectations
exceeded
Expectations
not fulfilled
Exploration
- go beyond constraints -
Exploitation
- work within constraints -
Source: Michael Rosemann, QUT
Improvement?

13. © Roger Tregear, Leonardo Consulting 2014 13
2 Virtuous Circles
Explore Exploit

14. © Roger Tregear, Leonardo Consulting 2014 14
2 Virtuous Circles
Strategy
Execution
Value
Delivery
Process
Management

15. © Roger Tregear, Leonardo Consulting 2014 15
2 Virtuous Circles
The Whyte Brite Laundry
a fictive case study

16. Whyte Brite Organization Diagram
Whyte Brite Laundry – Strategy Themes
Service
Innovation
© Roger Tregear, Leonardo Consulting 2014 16
2 Virtuous Circles
General Environmental Influences
Competition
Capital
Markets
Labor
Markets
Technology
Providers
Vendors
Owners
Personal
Customers
Commercial
Customers
Organizational
Capital
Development
Excellence
Customer
Care
Excellence
Environmental
Excellence

17. Whyte Brite Process Architecture
© Roger Tregear, Leonardo Consulting 2014 17
2 Virtuous Circles
Management Processes
Provide Personal Laundry Service
Provide Commercial Laundry Service
Core Value Chains
Lead The Organisation
Support The Organisation
Innovate Service Delivery
Control Environmental Impact
Other Support Processes

18. © Roger Tregear, Leonardo Consulting 2014 18
2 Virtuous Circles
Strategy
Meets
Process
Management Processes
Provide Personal Laundry Service
Provide Commercial Laundry Service
Core Value Chains
Lead The Organisation
Support The Organisation
Innovate Service Delivery
Control Environmental Impact
Other Support Processes

19. © Roger Tregear, Leonardo Consulting 2014 19
2 Virtuous Circles
Management Processes
Provide Personal Laundry Service
Provide Commercial Laundry Service
Core Value Chains
Lead The Organisation
Support The Organisation
Innovate Service Delivery
Control Environmental Impact
Other Support Processes
So What?
?How does this help deliver value?
?How is it to be managed?
?Who is responsible?

20. © Roger Tregear, Leonardo Consulting 2014 20
2 Virtuous Circles
The Chasm
Aspiration
Reality

21. © Roger Tregear, Leonardo Consulting 2014 21
2 Virtuous Circles
Crossing the Chasm
‘Deliberate excellence’ embedded in the culture:
strategy=process, improvement,
innovation, active management
Systemic, practical, creative,
credible, useful
Proven benefits
Mindset, not just toolset
Enabling leadership

22. © Roger Tregear, Leonardo Consulting 2014 22
2 Virtuous Circles
NOT Crossing the Chasm
Random acts of management
Some success, no momentum
‘Posters’, not systems
useful artefacts
Failed to deliver value
Encouraged but not empowered
Cultural barriers, e.g. measure
to persecute, not understand
All too hard … back to BABAE
BABAE = Business As Bad As Ever

23. © Roger Tregear, Leonardo Consulting 2014 23
2 Virtuous Circles
2 Virtuous Circles
putting process at the centre of business management

24. © Roger Tregear, Leonardo Consulting 2014 24
2 Virtuous Circles

25. © Roger Tregear, Leonardo Consulting 2014 25
2 Virtuous Circles
Continuously testing performance
Set process performance targets
Measure what is really happening
Do something if results
are not what they should be
Do something if results
are what they should be
Target-Measure-Respond:
unrelenting focus on
process performance.
‘Mind The Gap’ – core of Process Owner role.

26. © Roger Tregear, Leonardo Consulting 2014 26
2 Virtuous Circles
Respond to process performance
anomalies opportunities
Understand current
situation, define target,
design change required
Not just a ‘To Be’ or ‘To Do’
but new ‘As Is’
Methodology neutral
At least occasionally – Remarkable!
Close the process performance gap, i.e.
ensure effective strategy execution

27. © Roger Tregear, Leonardo Consulting 2014 27
2 Virtuous Circles
Key processes
at every level
always ‘turning’
at right speed
Triggered by PO,
delivering change
create new ‘As Is’
close the gaps

28. © Roger Tregear, Leonardo Consulting 2014 28
2 Virtuous Circles
PO or PI First?
PO supports:
the idea of BPM
supply/service chain
better mgt reporting
customer focus
PI supports:
operational problems
single process view
time, cost, quality
BPM PoC

29. © Roger Tregear, Leonardo Consulting 2014 29
2 Virtuous Circles
Keep the
Circles Turning
PO circle defines essential role of management
- continuously uncover resolve current and
emergent performance issues
PI circle seeks, finds, and effects the changes
required to close the performance gaps
Together achieve much more than either alone
‘Circular momentum’ drives improvement and
innovation, resisting influences that seek to
maintain the status quo

30. © Roger Tregear, Leonardo Consulting 2014 30
2 Virtuous Circles
It can be done: leadership, mindset, action
Define architecture, measures,
process owners – a system
Enable the Process Owners
Focus on performance - proven benefits,
occasionally remarkable - run ‘100’ PIPs
Give practical support
Create momentum
Keep the circles turning

31. © Roger Tregear, Leonardo Consulting 2014 31
2 Virtuous Circles
www.leonardo.com.au
www.slideshare.net
www.linkedin.com

32. © Roger Tregear, Leonardo Consulting 2014 32
2 Virtuous Circles
+61 (0)419 220 280
r.tregear@leonardo.com.au

33. © Roger Tregear, Leonardo Consulting 2014 33
2 Virtuous Circles
Roger Tregear
+61 419 220 280
r.tregear@leonardo.com.au
www.leonardo.com.au
www.rogertregear.com Let’s connect!
More information on BPM and related
topics can be found at the websites listed
above and at www.bptrends.com.
Roger’s column, Practical Process, is
published by BPTrends and all columns
can be accessed at the website (enter
“Tregear” in the search field). Many of the
columns are also available as a single
collection in the Amazon Kindle book,
Practical Process.
Copies of the Office of
BPM book are available
from Roger on request.

34. © Roger Tregear, Leonardo Consulting 2014 34
2 Virtuous Circles
Partners in Process
Organizations are traditionally managed via the organization chart. Yet not
one of the entities shown on that chart can, by itself, deliver value to a
customer. The reality is that we create, accumulate, and deliver value by
collaboration across the chart. We manage resources vertically using the
organization chart; we create and deliver value via business processes
operating across the organization chart.
Organizations want to reduce costs, enhance products and services, and
be more attentive to customers. Business Process Management (BPM)
offers a practical solution, refocusing management on how value is
created, accumulated, and delivered to customers and other stakeholders.
The focus is on the way work gets done, and what impedes it being done
in the most straightforward, efficient and effective way.
Leonardo Consulting provides assistance with the seven enablers
that put process at the center of business management.

35. © Roger Tregear, Leonardo Consulting 2014 35
2 Virtuous Circles
Together, building BPM
Together, we …
document the process architecture
This allows you to …
• understand how you create deliver value
• focus clearly on the most important elements
Together, we …
define process measures
This allows you to …
• deeply understand organizational performance
• prioritize process improvement investments
Together, we …
establish process governance
This allows you to …
• respond to process performance anomalies
• sustain continuous performance improvement
Together, we …
improve process performance
This allows you to …
• resolve important performance issues
• realize process improvement benefits
Together, we …
raise sustain process awareness
This allows you to …
• create a mindset of continuous improvement
• generate enthusiasm for performance excellence
Together, we …
enhance process capability
This allows you to …
• develop consistent, reusable approaches
• build in-house process improvement capability
Together, we …
establish ongoing process support
This allows you to …
• maintain process improvement quality
• embed continuous performance improvement

36. © Roger Tregear, Leonardo Consulting 2014 36
2 Virtuous Circles
Accelerating BPM development
Leonardo Consulting provides consulting, education and technology
accelerators for organizations wishing to develop higher levels of maturity
in each of the seven enablers of BPM.
For 15 years we have been a trusted advisor to our customers delivering
quality education, technology and consulting services. Our approach is
process-centric; our focus is performance-driven.
Our ability to assist organizations with innovative process-based
management is sound, practical, deep and proven.
Our work is unrelentingly focused on helping customers achieve their
goals using business process-centric management approaches.
Leonardo Consulting specialises in helping organizations achieve
effective process-based management. It’s what we do. It’s who we are.

37. © Roger Tregear, Leonardo Consulting 2014 37
2 Virtuous Circles
Leonardo BPM Curriculum BPM Consulting Services
BPM Maturity assessment
Process Improvement Projects
Process Architecture development
7 Enablers Rollout
Office of BPM development
Executive BPM coaching
Process practitioner coaching
Process performance analysis
Process governance design
Process modeling management
Process automation
BPM capability development
Measuring Processes
3 days of valuable insights into, and practical tools
for, the discovery, definition and management of
effective process performance measures
Improving Processes
This 3-day course delivers practical advice and
tools you can use immediately to generate great
process change ideas. Stop relying on chance.
Process Modelling Excellence
This 1-day, tool-neutral seminar is a breakthrough
experience for modellers and those who manage
them. It will improve your Return on Modelling.
BPTrends Professional Certificate
Over 5 days the Professional Certificate program
teaches a practical approach to analysing,
measuring and improving process performance.
BPTrends Enterprise Certificate
Beyond process improvement, the Enterprise
Certificate 5-day program teaches how to build
and maintain a truly process-centric organization.
better practices
Derivation
New
Process
Utilisation
potential practices
Enhancement
current practices
Innovation
new practices
analytical
creative