1. Assessing Business Process Maturity Chicago ABPMP October 2011

2. © 2011 ABPMP 2 Agenda TopicSpeakerTime Round Table DiscussionTodd20 minutes BPM Maturity OverviewBrett10 minutes Forrester Model (BPMMM)Jeanne20 minutes The Process and Enterprise Maturity Model (PEMM)Todd20 minutes Process Strategy Group Model (PBMMM)Pat20 minutes Networking BreakAll30 minutes Group ExerciseAll20 minutes Group Exercise Report OutAll20 minutes Group Findings & DiscussionTodd20 minutes Best Practices, Recommendations & ClosingBrett10 minutes

3. © 2011 ABPMP 3 Round Table Discussion Are you using a maturity model? Why or why not? If you are using one – which one are you using? How are you using it and what value does it provide you?

4. © 2011 ABPMP 4 Maturity Models Overview

5. © 2011 ABPMP 5 Maturity Models Stages of Growth Models Manufacturing Maturity Model Capability Maturity Model (CMM) Other IT Maturity Models Proliferation of Maturity Models

6. © 2011 ABPMP 6 Meta Model Levels (Stages of Growth) Categories Characteristics Assessment Models Prescriptive Models

7. © 2011 ABPMP 7 BPM Maturity Models AIIM Amentra Appian APQC Becker, Jorg BPMG (8 levels) BPTrends/Harmon Cordys (SaaS BPMM) EABPM (European Association for BPM) EDEN Forrester Gartner Global360 Hammer Huffner, Tapio IBM IDS-Sheer (Software AG) Innovation Value Institute Knowledge Partners International McQueen Consulting OMG (BPMM 1.0) Oracle Queensland University of Technology SMS Management XMPro

8. © 2011 Forrester Research, Inc. Reproduction Prohibited 8 © 2009 Forrester Research, Inc. Reproduction Prohibited Forrester Business Process Council Maturity Model Jeanne Strepacki Director, Business Process Council Forrester Research October 12, 2011

9. © 2011 Forrester Research, Inc. Reproduction Prohibited 9 BPM maturity is about achieving the right balance for your organization.

10. © 2011 Forrester Research, Inc. Reproduction Prohibited 10 Agenda  What is the Business Process Council?  Why did we launch a Maturity Model for the Council?  What does the model include and why?  How do our members use it?

11. © 2011 Forrester Research, Inc. Reproduction Prohibited 11 Forrester Leadership Boards A premier service level designed to help business process leaders solve business problems with a curriculum using peer and Forrester insight. 8 Boards, 1000+ members, $1B+ companies Application Development & Delivery Council Business Process Council The CIO Group Enterprise Architecture Council Information & Knowledge Management Council Infrastructure & Operations Council Security & Risk Council Sourcing & Vendor Management Council

12. © 2011 Forrester Research, Inc. Reproduction Prohibited 12 Identifies strengths and areas for improvement within an organization. Forrester Business Process Maturity Model-based assessment process Guided by advisor Connect to peers with similar challenges Peer best practices Analyst expertise Compare current state to desired state Prioritize gaps to work on

13. © 2011 Forrester Research, Inc. Reproduction Prohibited 13 Forrester Business Process Maturity Model: Self-assessment

14. © 2011 Forrester Research, Inc. Reproduction Prohibited 14 Five Levels of Maturity 0 — nonexistent Not understood, not formalized, need is not recognized 1 — ad hoc Occasional, not consistent, not planned, disorganized 2 — repeatable Intuitive, not documented, occurs only when necessary 3 — defined Documented, predictable, evaluated occasionally, understood 4 — measured Well-managed, formal, often automated, evaluated frequently 5 — optimized Continuous and effective, integrated, proactive, usually automated

15. © 2011 Forrester Research, Inc. Reproduction Prohibited 15 Critical Areas For Business Process Pros Leading Business Process Change June 2011 “Health Payers Search High And Low For Their Business Transformation Edge”

16. © 2011 Forrester Research, Inc. Reproduction Prohibited 16 Business Criteria  Strategic objectives  Cross-domain consistency  Customer empowerment  Competitive forces  External impact on process  Business architecture  Transformation project portfolio

17. © 2011 Forrester Research, Inc. Reproduction Prohibited 17 Process Discipline Criteria  Methodology  Change management skills  Change management effectiveness  Change management tactics  Process ownership  Process governance  Established goals  Measurement and reporting  Executive knowledge  Executive leadership

18. © 2011 Forrester Research, Inc. Reproduction Prohibited 18 Technology Criteria  IT-business process alignment  Business process tools  Technology skills  Alignment with MDM  App Internet/mobile strategy  Social and cloud strategy

19. © 2011 Forrester Research, Inc. Reproduction Prohibited 19 BPM maturity is about achieving the right balance for your organization.

20. © 2011 Forrester Research, Inc. Reproduction Prohibited 20 Forrester’s perceived current and future balance requirements

21. © 2011 Forrester Research, Inc. Reproduction Prohibited 21 How our members will use the tool  Part of onboarding process  Advisor/Member jointly create roadmap: prioritize gaps to work on  Resource for best practices  Quarterly updates  Annual check-up

22. © 2011 Forrester Research, Inc. Reproduction Prohibited 22 Thank You! Jeanne Strepacki Global Council Director +1 617/613-8110 jstrepacki@forrester.com Christophe Torride Senior Advisor, EMEA +33 1 4758 9342 ctorride@forrester.com David D’Silva Associate Advisor +1 617/613-6165 ddsilva@forrester.com

23. © 2011 ABPMP 23 Todd Lohr Michael Hammer’s Process & Enterprise Maturity Models (PEMM)

24. © 2011 ABPMP 24 Process Maturity Process Maturity provides a methodology to assess the ability of our processes to provide optimized performance to the business More mature process capabilities will drive enhanced business results Process Maturity provides the framework to establish our process structure and guides development of a process roadmap The process maturity framework reviewed here is based on the Process Enterprise Maturity Model (PEMM) developed by Michael Hammer and summarized in The Process Audit, Harvard Business Review, April 2007

25. © 2011 ABPMP 25 Process and Enterprise Maturity Model Process Maturity Models – A tool to help organizations plan and manage their transitions to process. Consists of:  a framework for assessing the maturity of any particular business process and  another for assessing the maturity of an enterprise as a whole. PEMM – a framework that helps executives comprehend, plan and assess process-based transformation efforts. Companies need to ensure that their business processes become more mature – that they are capable of delivering higher performance over time. Companies must deliver process enablers which pertain to individual processes and enterprise capabilities which apply to the entire organization.

26. © 2011 ABPMP 26 Process Maturity Process Maturity can be viewed on two- dimensions: Process Enablers – maturity of our individual processes to drive process transformation within our business areas Enterprise Capabilities – foundational requirements across the enterprise to enable successful process transformation within our processes Enterprise Capabilities Process Enablers

27. © 2011 ABPMP 27 Effective process organizations require capabilities within the enterprise to sustain their efforts These are the things that as an enterprise need to be in place to sustain process transformation and are the responsibility of the central Process Competency Center driven through the Process Owners The Enterprise Capabilities are: –Leadership to authorize and enable the effort –Culture a value system receptive to what process entails –Expertise capability to plan and execute process transformation –Governance a system to manage the effort and ensure it doesn’t fall apart Prerequisites of Process

28. © 2011 ABPMP 28 Enterprise Capabilities - Key Aspects Leadership –Knowledge –Alignment –Behaviors –Style Culture –Teamwork –Customers –Responsibility –Change Governance –Process Model –Accountability –Integration Expertise –Personnel –Methodology

29. © 2011 ABPMP 29 Process Enterprise Capabilities Fitting them together Culture Governance Expertise Leadership establishesshapesdevelops enablesinforms

30. © 2011 ABPMP 30 Enterprise Capabilities Stronger organizational capabilities makes for stronger enablers, which allow for better process performance. 13 different dimensions across E-1 E-2 E-3 E-4

31. © 2011 ABPMP 31 Enterprise Maturity Scoring

32. © 2011 ABPMP 32 Process Enablers Process enablers are required for each process for sustained performance These are the things that each process team needs to focus on for their respective process –Design specification of how the work is performed –Metrics used to assess and assure performance –Owner required to manage E2E view of the process –Performers knowledgeable users to ensure execution –Infrastructure required supporting mechanisms

33. © 2011 ABPMP 33 Process Enablers Determine how well a process is able to function over time. They encompass the comprehensiveness of a process’s design the abilities of the people who operate the process the appointment of top-level process owner to oversee the process’s implementation and performance the match between the organization’s information and management systems the process’s needs and the quality of metrics that the company uses to measure process performance. Enabler’s strength determines how mature a process is P-1 process is reliable, predictable P-2 process delivers superior results because the company has designed & implemented it from one end of the organization to another P-3 process delivers optimal performance because executives can integrate it with other internal processes to maximize company’s performance P-4 process is best in class extending back to suppliers and forward to customers

34. © 2011 ABPMP 34 Process Maturity Scoring

35. © 2011 ABPMP 35 Process Strategy Group Model Process Based Management Assessment and Roadmap Model Pat Dowdle-Process Strategy Group

36. © 2011 ABPMP 36 PSG View of Process Based Management Copyright 2011 Process Strategy Group All Rights Reserved Leverage existing programs Identify linkages Develop common terminology Processes named Boundaries identified Standard methodology Infrastructure established Measurement Architecture End-to-end performance Best Practices Benchmarks Awareness & Communication Executive leadership Process included in strategy Voice of the Customer Customer driven Products & Services A holistic management approach that focuses on:

37. © 2011 ABPMP 37 Focus of PBM Process Maps, Value Chains, Control Charts, Strategy Maps, etc. Continuous Improvement, Lean, Six Sigma, ISO, Target Costing, Balanced Scorecard, Baldrige, etc. Strategy, Operating Plan, Corporate Initiatives Process Based Management, Cost Management, Brand Management Examples Individual processes Enterprise management approach PBMPBM Copyright 2011 Process Strategy Group All Rights Reserved

38. © 2011 ABPMP 38 PSG PBM Assessment Evolution Research from 1994-1997 Experiences of 7 companies heavily engaged in reengineering, with negative consequences Developed an approach to becoming process based 1998-2004: 15+ companies 5 case studies and additional research - Bell Canada, Stat Oil, US Marine Corp, Boeing/USAF, Santee Cooper Developed the PBM Loop for evaluating implementation progress PBM Program: 2004-2008: 15+ companies Developed an Assessment Model to evaluate progress Develop a Roadmap on how to implement PBM 2008-now: Ongoing development and supporting tools Free Quick Assessment and Assessment for an Organization Process Perspectives Newsletter: results of Quick Assessment

39. © 2011 ABPMP 39 Assessment and Maturity AssessmentMaturity Action StepsGAPSStrengthsObjective Comparison to Others DestinationState of Progress Copyright 2011 Process Strategy Group All Rights Reserved

40. © 2011 ABPMP 40 Why do an Assessment? Enlist and secure management support Engage staff in adapting to new process culture Establish a baseline Identify and address Gaps Leverage Strengths Create actionable plans Alignment of strategy to process Copyright 2011 Process Strategy Group All Rights Reserved

41. © 2011 ABPMP 41 Results from Quick Assessment: Copyright 2011 Process Strategy Group All Rights Reserved

42. © 2011 ABPMP 42 PBM Assessment Categories: How they relate Copyright 2011 Process Strategy Group All Rights Reserved

43. © 2011 ABPMP 43 Copyright 2011 Process Strategy Group All Rights Reserved Category Descriptions Examines how your business strategy and Process Based Management (PBM) strategy integrate. Evaluates how the organization executes its plan for implementing and continuously improving PBM. Examines the roles, responsibilities and structure in place to oversee the implementation and management of PBM. Examines the extent to which PBM deployment has been achieved, your approach for cross-process integration, alignment with improvement methodologies, and stakeholder involvement. Examines how measures are designed and monitored to track the implementation of PBM. Evaluates PBM implementation against leading practices. Examines the structure and practices for capturing and utilizing process knowledge. Examines how you communicate PBM strategy, develop and maintain PBM competencies, and adapt your culture to PBM. Strategy & Planning Governance Deployment & Integration Evaluation Culture & Adaptation Process Knowledge Management

44. © 2011 ABPMP 44 The Roadmap to PBM Pathways for moving between Stages Detail steps for each Pathway –What, Why, How, Who –Inputs & Outputs Copyright 2011 Process Strategy Group All Rights Reserved

45. © 2011 ABPMP 45 Stages: Copyright 2011 Process Strategy Group All Rights Reserved

46. © 2011 ABPMP 46 PBM: Check up & Prognosis Copyright 2011 Process Strategy Group All Rights Reserved

47. © 2011 ABPMP 47 Quick Mini Full Web-based survey Initial baseline Overall Score Stage of Roadmap Limited feedback 2 Options Free Multiple Participants Web-based text responses 25 question set Targeted to Leadership Online Feedback session Prescriptive action plans utilizing Roadmap Focused on gaps and strengths Integrated Assessment System Complete criteria Onsite interviews with key personnel Full feedback session with senior management Extensive feedback report Prescriptive action plans PBM Assessment Types Copyright 2011 Process Strategy Group All Rights Reserved

48. © 2011 ABPMP 48 Culture and Adaptation - Quick Assessment Questions How are process efforts communicated to the organization? a) there is limited communication b) Some communication occurs in newsletters, emails, and departments meetings c) Communication of process efforts and results are frequently done to process teams and performers d) Communication of process efforts and direction is ongoing in all meeting agendas, newsletters, strategy discussions, and other methods of communication The role our senior leaders play in the Implementation of Process efforts: a) They have a limited role b) They are aware of the efforts, but not the driver c) They drive the efforts based on current pain points d) They drive the effort based on strategy Copyright © 2011 Process Strategy Group, LLC

49. © 2011 ABPMP 49 Quick Assessment Output Copyright 2011 Process Strategy Group All Rights Reserved Take it Yourself :http://www.processstrategygroup.com/Quick_Assessment.html

50. © 2011 ABPMP 50 Full Feedback Report: QA for an Organization We provide you with a full feedback report that highlights your results Copyright © 2011 Process Strategy Group, LLC

51. © 2011 ABPMP 51 Process Strategy Group www.ProcessStrategyGroup.com Learn more or take the Free PBM Quick Assessment at Learn more on the PBM Quick Assessment for an Organization at

52. © 2011 ABPMP 52 Group Exercise Self Assessments Break Into Groups Pick a Model

53. © 2011 ABPMP 53 Group Findings & Discussion What did you find? How easy was it to use? What value do you think your organization could get from using a maturity model? Do you think you have enough management maturity to begin using a BPM maturity model?

54. © 2011 ABPMP 54 Conclusion Using Maturity Models

55. © 2011 ABPMP 55 Why Use a Maturity Model Assessment Improvement Transformation Management Framework

56. © 2011 ABPMP 56 How to use a maturity model Choosing/customizing/building a model Process Improvement/Transformation Process Management Internal (Productivity, Quality, Control) External (Positioning, Differentiation, Strategy)

57. Not the CMM… Level 1: Initial The software process is ad hoc, and occasionally even chaotic. Few processes are defined, and success depends on individual effort and heroics. Frequent late nights and hollow, sunken eyes are common. Programmers at each others' throats. Managers mostly very angry. Level 2: Repeatable Should a similar project be run, it would probably be just as chaotic. Team leaders have slim control over the programmers. Project manager has installed MS Project, and printed out reams upon reams of Gantt charts which have already started to block doorways and commonly used pathways, e.g. from "zoo" area to kitchen. More late nights than not. Programmers generally civil to each other, but often murmur discontentedly behind each others' backs. Managers have bouts of rage during progress update meetings. Level 3: Defined The software process is documented, standardized, and integrated into a standard process for the organization. Managers express keenness to use the process for any new projects, as soon as all the current projects are finished. Programmers spend more time filling out forms than writing software. Level 4: Managed Accurate metrics are collected for each project, as and when it fails. Detailed "post-mortems" explain why the organization's standard process was not used yet again. Programmers spend large proportion of day updating CV and hanging around the popular job sites. Level 5: Optimizing A miracle worker was passing by one night. Programmers angry because most of the jobs out there are made-up. Source: July, 2003; http://www.bad-managers.com/rumours/cmm_level_one.shtml

58. Presented at ISACA, January 8, 2004 The roman empire Maturity Model Complete dominance cultural conquest Mercantile conquest Military conquest Explore (1) ad hoc Process Conquer (2) martial Process occupy (3) commercial Process colonize (4) Acculturation Process assimilate (5) Diplomatic Process Romans are everywhere Bow down to Rome, send tribute roman empire We are the world Getting to know you

59. © 2011 ABPMP 59 When all else fails…

60. © 2011 ABPMP 60 Your Feedback Is Important Does this workshop format work for you? Topics for future workshops Speakers/Topics for talks Anything else Send to: Officers@ABPMPChicago.org