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The Business Process Maturity Model (BPMM)

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Presentation on theme: "The Business Process Maturity Model (BPMM)"— Presentation transcript:

1 The Business Process Maturity Model (BPMM)
An Overview for OMG Members Dr. John Alden – Managing Partner Dr. Bill Curtis – Chief Scientist

2 * Questions and comments forward to:
Agenda Kick off, introductions and purpose-John Alden Overview of BPMM-Bill Curtis Fit with OMG standards-John Alden Discussion-all* * Questions and comments forward to: Or IM’s: Yahoo: johnwalden1019 AIM: aldensails

3 OMG standards relationships:
Business targeted standards: BMM OSM BPMN SBVR Organizational Capability: BPMM People CMM (SEI) Other standards for measurement: ITIL, COBIT, and CMMI(SEI) Software targeted standards: SPEM BPDM MDA/MOF/UML

4 The Ecology of Failed Systems
Work overloads Lack of measures & defined processes Siloed functional processes Inconsistent materials Unmanaged commitments Cascading rework Inconsistent procedures for identical tasks Unintegrated best practices

5 History of Maturity Models
Humphrey’s Process Maturity Framework Crosby’s Quality Maturity Grid Shewart, Deming SPC & PDCA CMM for Software System Eng. CMM People CMM CMMI Business Process MM Acquisition CMM While at IBM in the early 1980s, Watts Humphrey wanted to get software organizations to adopt the continuous Plan-Do-Check-Act improvement cycle invented by Walter Shewart and W. Edwards Deming. Humphrey learned of the Quality Maturity Grid while attending Philip Crosby’s quality college in Florida. Crosby’s five level grid posited that organizations followed an evolutionary path in adopting quality practices. They first became aware of a practice, then they learned more about it, they piloted its use, they deployed it widely, and ultimately they mastered its use. Humphrey realized that neither Crosby’s model nor Plan-Do-Check-Act were working in software organizations. After a decade or two of trying to adopt better software practices with these approaches, little progress had been made. Most organizations would try better practices, but then drop them in the rush of hurried projects. Humphrey’s unique insight came in realizing that to sustain the adoption of better practices, he had to solve the problems that presented barriers to continued improvement. The ordering of these problems provided Humphrey with the staging of the five levels in his Process Maturity Framework. Humphrey worked out the details for applying this framework to software when he came to the SEI in 1986 and published it in his landmark book, Managing the Software Process (1989). This framework is the foundation of all true CMMs. In 1991, Bill Curtis, Mark Paulk, and Charlie Weber led an effort at the SEI to produce the Capability Maturity Model for Software (Paulk et al., 1995) that integrated many best practices drawn from software development organizations into Humphrey’s framework. Bill Curtis later led an effort to develop the People CMM (Curtis et al., 2002) for applying the maturity framework to best practices for managing and developing the workforce. The U.S. Department of Defense developed an Acquisition Maturity Model when it realized it had to mature its practices as a customer in order to work effectively with a mature developer. The system engineering community developed their own version of a CMM based on an improvement model that differed from Humphrey’s framework, and therefore was not a true CMM. CMM Integration (CMMI) was attempted to integrate these different improvement architectures into one model that could be applied to both software and systems engineering. The CMM framework has proven robust and can be applied effectively to many domains of business processes. Developed by two authors of the CMM for Software

6 Maturity Model Typology
CMMI Continuous COBIT Maturity Ratings ITIL Maturity CMMI Staged People CMM Business Process MM Prescriptive practices Level of Implementation Detail SOA MMs Descriptive states Crosby Quality Maturity Grid ITIL Org. Growth Process maturity Organizational Capability Locus of Transformation

7 The Five Maturity Levels
Optimizing Change management Level 4 Predictable Capability management Continuously improving practices Level 3 Standardized Business line management Quantitatively managed practices Level 2 Managed Work unit management Standardized best practices Level 1 Initial Inconsistent management Repeatable practices

8 How the BPMM Works Level 5 Level 4 Level 3 Level 2 Level 1 Optimized
Implement continual proactive improvements to achieve business targets Capable processes Perpetual innovation Change management Level 4 Predictable Manage process and results quantitatively and exploit benefits of standardization Predictable results Reuse/knowledge mgt. Reduced variation Level 3 Standardized Develop standard processes, measures, and training for product & service offerings Productivity growth Effective automation Economies of scale Level 2 Managed Build disciplined work unit management to stabilize work and control commitments Reduced rework Repeatable practices Satisfied schedules Level 1 Initial Motivate people to overcome problems and just “get the job done” Mistakes, bottlenecks Ad hoc methods Hero worship

9 Structure of the BPMM Level 5 Level 4 Level 3 Level 2— Managed Level 2
Process Areas Work Unit Requirements Mgt. Practices Organizational Business Goverance Organizational Process Leadership Work Unit Requirements Mgt. Work Unit Planning and Commitment Work Unit Monitoring & Control Work Unit Performance Sourcing Management Work Unit Change Management Process and Product Assurance Work Unit Requirements Mgt. Goals SP1: Identify requirements SP 2: Clarify requirements SP 3: Evaluate requirements for implementation SP 4: Negotiate requirements SP 5; Maintain agreed to requirements SP 6: Conduct regular requirements review In 1: Describe the process In 2: Plan the process In 3: Provide knowledge and skills In 4: Control the process In 5: Objectively assure adherence SG1: Requirements are identified and evaluated SG2: Requirements baseline is maintained InG: Process is institutionalized Maturity Levels

10 Institutionalizing Practices
“The practices for [process_area] are institutionalized.” Process Planning Skills & Training Process Description Process Area Specific Practices (Implementation) Monitoring & Control Process Assurance

11 Level 1 – Initial Organizations
Undisciplined Few repeatable processes, often sacrificed under pressure Individualistic People rely on personal methods for accomplishing work Inconsistent Little preparation for managing a work unit Inefficient Few measures for analyzing effectiveness of practices Stagnant No foundation or commitment for improvement

12 Initial Organizations
Heros Firefighting Rework

13 Level 2 – Managed Organizations
Committed Executives commit organization to improving operations Proactive Managers take responsibility for work unit operations & performance Managed Commitments are balanced with resources Repeatable Work units use local procedures that have proven effective Responsible Work units are capable of meeting their commitments

14 Organizational Process Leadership Organizational Business Governance
Level 2 Process Areas Executives Organizational Process Leadership Organizational Business Governance Managers Work unit members Work Unit Requirements Management Work Unit Performance Work Unit Change Management Work Unit Planning and Commitment Sourcing Management Work Unit Monitoring and Control Process and Product Assurance Staff

15 Level 3 – Standardized Organizations
Organizational Integrate end-to-end business processes across siloed functions Integrated Establish standard processes from best practices in work units Adaptable Standard processes tailored for best use in different circumstances Leveraged Common measures and processes promote organizational learning Professional Organizational culture emerges from common practices

16 Levels 2 to 3 Transition Level 3 Level 2 Confederated work units Work
Standard Process This is a process description derived from the local method of doing it Level 3 Tailored Process This is a process description derived from the local method of doing it Work Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Enterprise-wide end-to-end, integrated business process Work Unit 5 Procedures Unit 4 Do this Do that Unit 2 Do this first Do this next Do this last Confederated work units Unit 1 Unit 2a Unit 3 Unit 4a Unit 5a Level 2

17 Level 3 Process Areas Staff Work unit members Organizational Process
Management Competency Resource Configuration Product and Service Preparation Deployment Product and Service Operation Support Product and Service Management Managers

18 Domain Specific Process Areas
Market Evaluation Communication Sales Support Product Specification Marketing Management Product and Service Preparation Operation Support Deployment Management Collection & Dispersement Financial Reporting Modeling & Projection Governance Finance Management

19 Level 4 – Predictable Organizations
Quantitative Process variation, performance, and capability understood quantitatively Stable Variation reduced through reuse, mentoring, & statistical mgt. Empowered Process data empowers staff to manage their own work Multi-functional Functional processes reengineered as roles in business processes Predictable Outcomes predictable from sub- process capability & performance

20 Level 4 Process Areas Staff Organizational Capability Management
Work unit members Business Process Integration Organizational Common Asset Management Managers Quantitative Process Management Quantitative Business Management

21 Level 5 – Optimizing Organizations
Proactive Improvements planned to achieve business strategies & objectives Systematic Improvements evaluated and deployed using orderly methods Continual Individuals and workgroups continuously improve capability Aligned Performance aligned across the organization Preventative Defects and problem causes systematically eliminated

22 Level 5 Process Areas Executives Organizational Improvement Planning
Deployment Process and Product Innovation Staff Work unit members Defect and Problem Prevention Continuous Capability Improvement Organizational Performance Alignment

23 Semiconductor Equipment
BPMM Pilots International Bank Objectives: Achieve cost reductions External recognition for efficiency and low risk Health Care Services Objectives: Reduce billing errors Provide framework for 6 and business process reengineering Semiconductor Equipment Objectives: Integrate improvement activities Extend process maturity benefits to every business process Gaming Objectives: Integrate development, installation, & support processes Improve efficiency of operations

24 Transforming the Culture
Level 3 Organization develops standard processes, Engineering culture Level 5 Opportunistic Improvements, Empowered culture Proactive Agile culture Organization Level 4 End-to-end process managed statistically, Precision culture Discipline Level 2 Project mgrs. establish discipline & stability, Commitment culture Trust Work unit Level 1 Ad Hoc processes, inconsistent results, Hero-driven culture Individual

25 Summary The immaturity of business processes strictly limits the value and success of IT systems The process maturity framework is a proven roadmap for improving process capability and unlocking the full value of IT systems The Business Process Maturity Model enables greater fidelity between the actual performance of business processes and their model-based representations

26 * Questions and comments forward to:
Agenda Kick off, introductions and purpose-John Alden Overview of BPMM-Bill Curtis Fit with OMG standards-John Alden Discussion-all* * Questions and comments forward to: Or IM’s: Yahoo: johnwalden1019 AIM: aldensails

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