BPM Case Management Global Summit - Building a BPM CoE

© 2014 IBM Corporation
Climbing Mountains –
Implementing a BPM Center
of Excellence
Scott Simmons
Lead BPM Solution Architect
IBM Software Group
scottsim@us.ibm.com

22 © 2014 IBM Corporation
3 Key Points for Discussion
• BPM projects are often challenged due to
‒ Limited business/IT collaboration
‒ Ineffective requirements gathering and scope creep
‒ Limited BPM expertise and methodology
• CoEs do not just happen – they require work and resources
• Method adoption is key for CoE – Agile BPM is fundamental for success
“Individually, we are one drop. Together, we are an ocean.”
Ryunosuke Satoro

AGENDA
• Where Are You Going
• Building the Perfect Beast
• Beware of Falling Objects

BPM in a Vacuum Does Not Work ...
Didn’t you read the business
requirements …. Don’t you
understand that this solution does
not match… grrrrr … IT techies!!
You business folks – you
just don’t know what you
want … first one thing …
and then something else …
grrrrr … users!!!

In My Work Establishing CoEs – I Get Asked …
• What is the difference between a CoE and
a CoC?
• We have a SOA CoE – can we just use that
as our BPM CoE?
• Will the CoE help with our Lean initiative?
• Business does not want to be involved –
can the CoE be strictly IT?
• CoEs might work in other organizations –
but how can it work here?
• Most of the time – I am the coach … the
teacher … the facilitator …
• BUT sometimes I am the “Terminator” ;-)

Let’s First Establish – BPM CoEs Drive BPM Success
80% of the organizations with a COE report some degree of success with BPM
Source: 2009 BPM State of the Market Report, Transformation & Innovation
http://www.bpm.com/2009-bpm-state-of-the-market-report.html

BPM Challenges e.g. Why BPM “Hits The Wall”
• Enterprise Competency and BPM Adoption
‒ Lack of coordination between organizational boundaries
‒ Duplication of resources across the organization
‒ Lack of critical mass of skills
• Business/IT Collaboration
‒ Lack of collaboration across Business and IT
‒ Difficulty with identifying process owners in the business
• Process Discovery and Project Coordination
‒ Poor communication of business intent and requirements
‒ Wrong project scope and/or scope creep
‒ Outcomes are not the expected or required ones
‒ Long delivery time
• BPM Methodology and Governance
‒ Waterfall-based development lifecycle
‒ Inconsistent BPM approaches across the organization
8

What is a Center of Excellence?
Definition: Whatever you call them, a
Center of Excellence (CoE) should, at
a most basic level consist of:
A team of people that promote
collaboration and using best practices
around a specific focus area to drive
business results. This team could be
staffed with full- or part-time
members.
http://agileelements.wordpress.com/2008/
10/29/what-is-a-center-of-excellence/
Jon Strickler Walter White
OR
Heisenberg?

Governance
Prioritize initiatives &
implement governance
processes
Develop Skills
Identify skill gaps &
create development
roadmaps
Process Optimization
Analyze trends and
alert process owners to
situations that need
attention
Promote Adoption
Manage process
standards to reduce
project risk and
accelerate delivery
Thought Leadership
Set direction and vision
for process
management
Best Practices
Capture, communicate
and enforce best
practices and methods
Center
of
Excellence
But … What Does a BPM Center of Excellence Do?
THE ROLE OF THE CoE OFTEN DIFFERS BY ORGANIZATION

IT-led Business-led
Centralized
Federated
BPM CoEs Depend on Organization and Culture
Business and IT Collaboration and Alignment is Key

Key Responsibilities for a BPM CoE
• Enterprise Competency and BPM Adoption
‒ Provide coordination/consistency between organizational boundaries
‒ Central design clearinghouse e.g. leading practices, technical future, resources
‒ Manage BPM Adoption and Training
• Business/IT Collaboration
‒ Ensure communication/collaboration between groups
‒ Technical AND business leadership for BPM initiatives
• Process Discovery and Project Coordination
‒ Support BPM project prioritization and scope
‒ Manage expectations and outcomes
‒ Optimize Time-to-Market for new BPM applications
• BPM Methodology and Governance
‒ Provide Agile BPM as a consistent approach to BPM delivery
‒ Establish consistent BPM governance and reuse approach
‒ Manage/conduct Design Reviews
‒ Support for multiple styles of BPM e.g. CASE, STP, Content
‒ Support for key BPM capabilities e.g. Cloud, BAM, Social, Mobile

BPM CoE Goals Vary By Organization
 Support Demand Generation via BPM adoption
 Support for Business Transformation programs
 Enable enterprise BPM governance
 Support Demand Fulfillment – Projects
prioritization and completion (time/budget)
 Provide a shared infrastructure for business
 Support an approach which fosters re-use
 Provide specialized skills/resources
 Many options … up to you to decide …

Core BPM CoE Components
 Charter/Mission
 Organization and Executive Sponsorship
 Relationships with organizations
 Other CoEs, governance teams, etc.
 Re-use of existing practices and models
 BPM Governance Policy/Enforcement
 Prioritization of projects
 Taking business strategy into account
 Includes understanding of technical risks
 Communication
Additional Considerations
 Evangelism
 Methodology and Open Standards
 Reuse of assets such as style guides
 Measurement – metrics, timers, KPIs
 Open Standards e.g. CMIS, BPMN, BPEL
 Consultancy
 Accelerate BPM projects and adoption
 Consistency across BPM domains
 Currency
 Keeping up with latest trends, product
announcements, etc.
The Anatomy of a BPM CoE

 Number of continuous improvement projects
 ROA - % of asset (process) reuse
 Baseline client satisfaction
 % variance of budget and schedule
 Number of processes captured
 % of redundancy eliminated
 % of manual work automated
 Reduction of policy exceptions
Mission
 Act as central point for BPM work across enterprise
 Set and govern end-to-end method policies and
procedures
 Support taskforces in cross divisional
collaboration/convergence initiatives
 Champion innovation which support BPM strategies
 Manage BPM communication
 Establish rules of engagement across lines of
businesses and follow formalized engagement
process including how to manage exceptions
 Conduct periodic and ad-hoc project audits & status
and monthly sponsor checkpoints
 Follow formalized communication process
 Conduct user group meetings
 Track and manage approved initiatives in a pipeline
and prioritize projects based on stakeholder priorities
 Conduct annual budget plan
Operating Principles
Success Measurements
 Support users, best practices, issues; validate models
 Recognize BPM opportunities to inject into cross
divisional collaboration/convergence efforts
 Conduct education across the enterprise
 Scope: enterprise-wide, cross-divisional collaboration
efforts
 BPM Project roadmap and dashboard
 BPM Governance Methodology
 BPM Development Methodology
 Reusable BPM assets
 SME Contacts, Reference Examples
 Best Practice Solutions, Perform Guides / Project
Workbooks
 Custom Tools to Assist and Automate
Services, Scope, Deliverables
Critical First Step – Developing the BPM CoE Charter

CoE Staffing1
7
2. Plan, Prioritize &
Evangelize
3. Build Leverage &
Reuse
4. Deliver Solutions
5. Build & Manage
Infrastructure
Solution and Transformation Teams
Solution B Solution C
Platform / Infrastructure Team
Solution A
Steering Committee
CoE Governance
Discipline Authorities
…
• Expand and Scale
• Manage and Tune
• Implement Infrastructure
• Monitor Usage
• Senior Sponsorship
• Set Direction
• Enterprise Process Roadmap
• Prioritize Opportunities
• Manage Talent Plan
• Standardize Designs
• Identify Reuse Potential
• Release Scoping and Definition
• Build and Test
• Deployment and Support
• Establish Funding Model
• Escalation Endpoint
• Standardize Methods
• Drive Consistent Metrics
• Evangelize Process & BPM
• Oversee Execution
• Ensure Solution Robustness
• Solution Risk Management
• Communication & Training
• Measurement & Optimization
1. Align Direction &
Funding

Riyadh Bank CoE Organization
From IBM IMPACT 2014 – April 2014

1 to 3 Weeks
Enabling An Agile BPM Methodology: Iterative Playbacks
8 to 10 Weeks
2 to 3
Weeks
1 to 2
Weeks
Test
Go
Live
Development
Infrastructure
Training/ Mentoring
Definition
How many playbacks … how frequently … what are criteria ….
This will vary by organization and process --- but having a representative structure is the key –
Often you will iterate over a given playback a number of times

Project Identification and Design Approach
• A key focus of BPM CoEs should be in the BPM project selection/design
• Organizations need an established approach for project identification
and initial process design with key stakeholders
• Process Discovery provides a foundation to drive requirements and
increase the success of the BPM initiatives

Process Discovery
Process Discovery enables “business stakeholders” direct
involvement in BPM design – decreasing time-to-market through
better requirement and process definition and increasing the quality
and business acceptance of BPM solutions
Process Discovery provides linkage to Lean Six Sigma Initiatives

1.
Understand the
Current
Environment
2.
Define the CoE
Mission and Vision
3.
Define CoE Roles,
Responsibilities
and Mechanisms
9.
Get Approval of
Sponsor and
Stakeholders
5.
Identify CoE
Mentoring and
Educational Needs
4.
Map Resources
and Mechanisms to
CoE Roles
8.
Create Transition
Plan
7.
Define Education
and Mentoring
Plans
6.
Identify CoE
Processes
Inputs
 BPM Roadmap
 Current Organization
Assessment
 Current IT Environment
 Current Organization
Description
 Organization Design
 Job Roles, Responsibilities,
and Competencies
Outputs
 CoE Mission , Vision & Scope
 CoE Operating Principles
 CoE Transition Plan
 CoE Job Roles,
Responsibilities
 Governance Operating Model
 Governance Processes and
Delegation hierarchy
 Governance dispute resolution
mechanism
 CoE Organizational Design
 CoE Education Plan
 CoE Mentoring Plan
 Demand management process
 Decision criteria
 CoE Metrics and
Measurements
Establishing a BPM Center of Excellence

Leading Practices for BPM Project Management
• Design Reviews should be ongoing and provide
consensus and steps for optimization
• Executive Sponsorship is critical to success
• Involve business stakeholders from the onset –
collaboration/alignment is mandatory for success
• Process discovery is critical – without a clear
direction, success cannot be achieved
• Define and document project scope to ensure
alignment and expectation management
• Practice “Agile BPM” e.g. “Blueprinting”, Process
Discovery, “Playbacks”, Discovery Workshops

CoE Monitoring is Often Overlooked2
4
Resource Efficiency
Reduce the gap between
Business and IT
Customer Satisfaction
IT ability to respond to business
quicker / more accurately
IT to add value to solution
Quality of Delivery
Accuracy of Delivery
Decision making confidence
Strengthen relationship between
IT and Business
Operational Efficiency
Alignment of Business Processes
Reduction in time to market
Increased business value
Business confidence in solution
/technology
Accuracy of process and data
Consistency of process and data
Project development on track
Strengthen relationship between
IT and Business
Reduction in hardware / software
costs
Increase in % of user education
(Business, Developers,
Administrators)
Reduction in “bug fixes”
Reduction in overall support calls
Reduction in time to close calls
# of project completed in less
time / with less resources
Reduction in development costs
and cycle times
Increased # of business assets
Increased # of artifacts reused
 CoEs are like BPM – you cannot manage it if you cannot measure it
 What are the measurements of success to maintain Management support?
 Key to define tangible/measurable metrics for CoE ROI and define in Charter
Intangible Tangible

Uniquevaluerealized
1 2
Identify a Project Extend Initial Project
into a Program
3
Transform by
Integrating Capabilities
Across the Enterprise
Process Transformation
Continuous Process
Improvement Across the
Enterprise
Simulate Process
Models to Optimize
Process Flow
Value realized
• Develop automated capabilities for
processes and decisions
• Leverage proven methodologies to
implement process and/or decision
automation
• Scale on initial project success
• Extend automation with greater integration
across the enterprise
• Further optimize decisions with situational
context from business events
• Provide detailed visibility into running
processes with configurable dashboards
• Identify opportunities to improve
processes
• Identify opportunities to improve
decision making
• Develop a roadmap for BPM
transformation
• Develop a roadmap for BRMS
transformation
• Identify skills, tools, and, standards
gaps within the organization
• Automate simple processes
Discover & Document
a Current Business
Process
Document Policies
and Automate
Decision Logic
Monitor Process
KPIs to Optimize
Effectiveness
Track Process
Steps in Real Time
Establish a Center
of Excellence Build a Skills
Development
Program
Consolidate
Governance Activities
Automate Manual
Activity Flows
Moving from BPM Project to BPM Adoption

Typical Barriers to BPM CoE Success2
7
People
 Competing priorities, silos of activity
 Lack of demonstrated ROI
 Business demand exceeds IT supply
 Pockets of expertise
 IT becomes a bottleneck
 Lack of time, budget, resources
Data, Technology & Infrastructure
 Perceived to be difficult to use, hard to learn
 Response times do not meet expectations
 Inconsistent meta data, data definitions, security
 Silos of data, poor integration
 Structured data vs unstructured data
 Many different tools, expensive to support/license
Process
 Best practices not shared, accessible
 Poor/inconsistent methodologies/standards
 Lack of adequate skills
 Projects not aligned with goals & strategy
 Compliance issues, governance, risk
Culture
 Lack of senior management commitment
 Communication gap between IT and LOB
 Process ownership conflicts
 Funding Model
 Resistance to change
 Lack of accountability & ownership for KPIs

Summary
• Enterprise BPM requires an top-down
organizational strategy
• Key Guiding Principles for a CoE
‒ C-Level Commitment is critical
‒ Foster/mandate business/IT alignment
‒ Focus on requirements gathering and an
Agile BPM Methodology
‒ Understand CoEs do not just happen
‒ Involve your key vendors – BPM, SOA,
Database, Application etc
• Steps for action
‒ Assess current state
‒ Determine “where you want to be”
‒ Define a plan for the CoE
‒ Execute the plan prudently
‒ Measure, evaluate and evolve
• Work as a Team to achieve Success

Questions?

References
• Evaluating BPM applications: BPM design reviews and Rubik's Cubes
http://www.ibm.com/developerworks/bpm/bpmjournal/1302_col_simmons/1302_col_simmons.html
• Synchronicity: An agile approach to business process management
http://www.ibm.com/developerworks/websphere/bpmjournal/1202_col_simmons/1202_simmons.html
• Successful BPM takes a true team-oriented approach
http://www.ibm.com/developerworks/websphere/techjournal/1108_col_simmons/1108_col_simmons.html
• SOA governance and the prevention of service-oriented anarchy
http://www.ibm.com/developerworks/websphere/techjournal/0609_col_simmons/0609_col_simmons.html
• Scaling BPM Adoption: From Project to Program with IBM Business Process Manager
http://www.redbooks.ibm.com/abstracts/sg247973.html
• Creating a BPM Center of Excellence
http://www.redbooks.ibm.com/abstracts/redp4898.html?Open

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