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© 2006 The Business Process Maturity Model (BPMM) Dr. John Alden – Managing Partner Dr. Bill Curtis – Chief Scientist Dr. John Alden – Managing Partner Dr. Bill Curtis – Chief Scientist An Overview for OMG Members
© Capability Measurement, 10-2006 2 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: email@example.com Or IM’s: Yahoo: johnwalden1019 AIM: aldensails
© Capability Measurement, 10-2006 3 OMG standards relationships: Organizational Capability: BPMM People CMM (SEI) Other standards for measurement: ITIL, COBIT, and CMMI(SEI) Business targeted standards: BMM OSM BPMN SBVR Software targeted standards: SPEM BPDM MDA/MOF/UML
© Capability Measurement, 10-2006 4 The Ecology of Failed Systems Inconsistent materials Work overloads Lack of measures & defined processes Cascading rework Siloed functional processes Inconsistent procedures for identical tasks Unmanaged commitments Unintegrated best practices
© Capability Measurement, 10-2006 5 History of Maturity Models Acquisition CMM People CMM System Eng. CMM CMMI CMM for Software Humphrey’s Process Maturity Framework Crosby’s Quality Maturity Grid Shewart, Deming SPC & PDCA Business Process MM Developed by two authors of the CMM for Software
© Capability Measurement, 10-2006 6 Maturity Model Typology Organizational Capability Process maturity Descriptive states Prescriptive practices Locus of Transformation Level of Implementation Detail ITIL Org. Growth Crosby Quality Maturity Grid CMMI Continuous C OBI T Maturity Ratings ITIL Maturity Ratings CMMI Staged People CMM Business Process MM SOA MMs
© Capability Measurement, 10-2006 7 The Five Maturity Levels Level 1 InitialInconsistentmanagement Repeatable practices Level 2 Managed Work unit management Standardized best practices Level 3 Standardized Business line management Quantitativel y managed practices Level 4 PredictableCapabilitymanagement Level 5 OptimizingChangemanagement Continuously improving practices
© Capability Measurement, 10-2006 8 How the BPMM Works Level 5 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
© Capability Measurement, 10-2006 9 Structure of the BPMM Level 5 Level 4 Level 3 Level 2— Managed Level 1 Maturity Levels 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 Level 2 Process Areas SG1: Requirements are identified and evaluated SG2: Requirements baseline is maintained InG: Process is institutionalized 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 Work Unit Requirements Mgt. Practices
© Capability Measurement, 10-2006 10 Institutionalizing Practices “The practices for [process_area] are institutionalized.” Process Area Specific Practices (Implementation) Monitoring & Control Process Assurance Process Planning Skills & Training Process Description
© Capability Measurement, 10-2006 11 Level 1 – Initial Organizations 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 Undisciplined Few repeatable processes, often sacrificed under pressure
© Capability Measurement, 10-2006 12 Initial Organizations
© Capability Measurement, 10-2006 13 Level 2 – Managed Organizations Repeatable Work units use local procedures that have proven effective Committed Executives commit organization to improving operations Managed Commitments are balanced with resources Proactive Managers take responsibility for work unit operations & performance Responsible Work units are capable of meeting their commitments
© Capability Measurement, 10-2006 14 Staff Work unit members Executives Managers Level 2 Process Areas Work Unit Requirements Management Work Unit Planning and Commitment Work Unit Monitoring and Control Work Unit Performance Sourcing Management Process and Product Assurance Work Unit Change Management Organizational Process Leadership Organizational Business Governance
© Capability Measurement, 10-2006 15 Level 3 – Standardized Organizations Adaptable Standard processes tailored for best use in different circumstances Organizational Integrate end-to-end business processes across siloed functions Integrated Establish standard processes from best practices in work units Leveraged Common measures and processes promote organizational learning Professional Organizational culture emerges from common practices
© Capability Measurement, 10-2006 16 Standard Process This is a process description derived from the local method of doing it Level 3 Levels 2 to 3 Transition Tailored Process This is a process description derived from the local method of doing it Work Unit 1 Work Unit 2 Work Unit 3 Work Unit 4 Work Unit 5 Enterprise-wide end-to-end, integrated business process Work Unit 5 Procedures Work Unit 5 Procedures Work Unit 5 Procedures Work Unit 4 Do this Do that Procedures Work Unit 2 1. 1.Do this first 2. 2.Do this next 3. 3.Do this last Procedures Work Unit 2 1. 1.Do this first 2. 2.Do this next 3. 3.Do this last Procedures Confederated work units Work Unit 1 Procedures Work Unit 2a 1. 1.Do this first 2. 2.Do this next 3. 3.Do this last Procedures Work Unit 3 Procedures Work Unit 4a Do this Do that Procedures Work Unit 5a Procedures Level 2
© Capability Measurement, 10-2006 17 Managers Work unit members Staff Level 3 Process Areas Product and Service Preparation Product and Service Deployment Product and Service Operation Product and Service Support Product and Service Management Organizational Process Management Organizational Competency Management Organizational Resource Management Configuration Management
© Capability Measurement, 10-2006 18 Domain Specific Process Areas Product and Service Preparation Product and Service Operation Product and Service Support Product and Service Deployment Product and Service Management Market Evaluation Market Communication Sales Support Product Specification Marketing Management Collection & Dispersement Financial Reporting Financial Modeling & Projection Financial Governance Finance Management
© Capability Measurement, 10-2006 19 Level 4 – Predictable Organizations Quantitative Process variation, performance, and capability understood quantitatively Multi-functional Functional processes reengineered as roles in business processes Predictable Outcomes predictable from sub- process capability & performance Stable Variation reduced through reuse, mentoring, & statistical mgt. Empowered Process data empowers staff to manage their own work
© Capability Measurement, 10-2006 20 Managers Work unit members Staff Level 4 Process Areas Organizational Common Asset Management Organizational Capability Management Quantitative Process Management Quantitative Business Management Business Process Integration
© Capability Measurement, 10-2006 21 Proactive Improvements planned to achieve business strategies & objectives Systematic Improvements evaluated and deployed using orderly methods Preventative Defects and problem causes systematically eliminated Aligned Performance aligned across the organization Continual Individuals and workgroups continuously improve capability Level 5 – Optimizing Organizations
© Capability Measurement, 10-2006 22 Work unit members Staff Executives Level 5 Process Areas Organizational Improvement Planning Defect and Problem Prevention Continuous Capability Improvement Organizational Performance Alignment Organizational Improvement Deployment Organizational Process and Product Innovation
© Capability Measurement, 10-2006 23 Health Care Services Objectives: Reduce billing errors Provide framework for 6 and business process reengineering BPMM Pilots International Bank Objectives: Achieve cost reductions External recognition for efficiency and low risk 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
© Capability Measurement, 10-2006 24 Transforming the Culture Discipline Level 5 Opportunistic Improvements, Empowered culture Level 5 Opportunistic Improvements, Empowered culture Level 5 Proactive Improvements, Agile culture Level 5 Proactive Improvements, Agile culture Organization Work unit Individual Level 4 End-to-end process managed statistically, Precision culture Level 4 End-to-end process managed statistically, Precision culture Level 3 Organization develops standard processes, Engineering culture Level 3 Organization develops standard processes, Engineering culture Level 2 Project mgrs. establish discipline & stability, Commitment culture Level 2 Project mgrs. establish discipline & stability, Commitment culture Level 1 Ad Hoc processes, inconsistent results, Hero-driven culture Level 1 Ad Hoc processes, inconsistent results, Hero-driven culture Trust
© Capability Measurement, 10-2006 25 Summary 1.The immaturity of business processes strictly limits the value and success of IT systems 2.The process maturity framework is a proven roadmap for improving process capability and unlocking the full value of IT systems 3.The Business Process Maturity Model enables greater fidelity between the actual performance of business processes and their model-based representations
© Capability Measurement, 10-2006 26 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: firstname.lastname@example.org Or IM’s: Yahoo: johnwalden1019 AIM: aldensails
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