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Business Change and Business Process Management
Business Change: Focuses on both individuals and processes.
Business Process Management (BPM): Viewed as a journey rather than a destination.
Continuous Management: BPM should be managed throughout a life cycle model.
Organizational Approach to Business Change
Annual Cycle for Business Change: Similar to strategic planning.
Adopting BPM Life Cycles: Choose a life cycle that aligns with BPM principles.
BPM Life Cycle Framework
Five Phases of BPM Life Cycle:
Alignment to Strategy and Goals
Architect Changes
Develop Initiatives
Implement Changes
Measure Success
Continuous Improvement: Critical in the last phase.
Phase 1: Alignment to Strategy and Goals
Develop a process-driven strategy.
Align processes with organizational goals and customer objectives.
Identifying processes that require change and aligning metrics is essential.
Phase 2: Architect Changes
Activities include:
Process modeling
Process analysis
Process design
Performance measurement
Focus on identifying major organizational processes.
Phase 3: Develop Initiatives
Plan development for implementation:
Process training
Change management
Project and technology change plans
Benefits realization plan
Phase 4: Implement Changes
Implement plans from Phase 3.
Requires a structured project implementation schedule.
Focus on technology Go-Live and stabilization.
Phase 5: Measure Success
Realize benefits from the plan and implement a permanent governance model.
Focus on continuous measuring, monitoring of processes, and technology.
Types of Processes
Primary Processes (20%)
Core activities delivering value to customers.
Involves creating, marketing, and supporting a product/service.
Support Processes (70%)
Support primary processes by managing resources and infrastructure.
Examples: IT management, HR, facilities management.
Management Processes (10%)
Involved in measuring, monitoring, and controlling business activities.
Types of Activities in Business Processes
Value-Adding Activities: Contribute positively to output.
Handoff Activities: Transfer control to other departments.
Control Activities: Ensure adherence to goals, quality standards, and regulations.
BPM as a Management Discipline
Governance in BPM: Structured decision-making regarding process performance.
Creation of cross-functional roles to manage processes beyond silos.
Process ownership clarifies responsibilities across functions.
Key Roles in BPM Implementation
Process Owner: End-to-end responsibility for a business process. Engages stakeholders, monitors performance, proposes corrective action.
Process Leader: Executive leadership establishing BPM strategy, ensuring alignment with organizational vision.
Process Steward: Ensures alignment of operational procedures. Gathers feedback and suggests improvements.
Process Analyst: Collaborates on process design, maintaining process models, performing analysis.
Process Governor: Drives standardization and best practices in BPM methodologies.
BPM Links Strategy to Execution
Broad Relevance: BPM creates process-driven organizations capable of executing strategies effectively.
Challenges: Only 13% of organizations meet yearly strategic goals; BPM can help overcome execution challenges.
BPM Discipline: A holistic approach to manage business processes aligned with strategy, focusing on value delivery.
Types of Drivers for Business Change
Internal Drivers: Policy changes, management decisions, or objectives leading to process reevaluation.
External Drivers: Market shifts, regulatory requirements affecting operations.
Frameworks for Business Analysis
Strategy Maps: Visual representation of organizational strategy.
Value Chain Analysis: Evaluating activities adding value to end products or services.
Porter’s Five Forces Model**
Analyzing competition involving five primary forces affecting profitability in an industry.
SWOT Analysis
Analyzes strengths, weaknesses, opportunities, and threats within an organization.
Encourages identifying internal capabilities against external challenges.