Certified Business Process Professional CBPP Study Session Part

Certified Business Process Professional (CBPP®) Study Session Part 4 Sept. 15, 2010

House Keeping ABPMP • Only the “call in option” is available today to increase the recording quality of the webinar • An On Demand version of this will be available through the ABPMP website • A PDF of the slides will also be available for this webcast with the On Demand version © ABPMP 2

Today’s Topic: Review Chapters 8 and 9 of the BPM CBOK® The Process Organization 7. 0 Enterprise Process Management 8. 0 Tony Benedict, President of ABPMP Jon Strickler, ABPMP Denver Chapter 3 3

BPM CBOK® Knowledge Areas Business Process Management Technologies Process Management Organization Enterprise Process Management 4 4

7. 0 Process Management Organization 19 Questions 14% of the Exam 7. 1 Process Management Roles • • Distinguish between the horizontal focus of the organization versus the traditional vertical focus Understand the definition of a process centric enterprise and the impact it can have on management’s accountability for performance 7. 2 Characteristics of the process culture • Understand what the characteristics of an enterprise process culture and how they support the process centric strategies 5 5

7. 0 Process Management Organization 7. 3 Process Management and Governance Roles Define the role of the process owner Describe how the process owner’s responsibilities differ from those of the functional manager. • Describe and distinguish the different roles of the process owner, the project manager, the process analyst and the process governance team to accomplish their main responsibility 7. 4 Organizational Change Management • Understand how process integration will impact to the traditional organizational structure and management roles • Define the change management issues encountered in implementing process changes and role definition. • • 6 6

8. 0 Enterprise Process Management 8. 1 Enterprise Process Governance • • • Understand concepts of the Enterprise Process Management as a way of expressing strategy in terms of cross-functional activity Identify main factors that impact cross-functional enterprise decision making Describe reasons and objectives of Enterprise Process Governance Describe benefits of EPM and importance of business knowledge, roles and responsibilities, goals and priorities Describe aspects of the Customer Centric Measurement Framework 8. 2 Process Frameworks • • Uses and benefits of different frameworks to achieve the benefits of establishing of common definitions and standardized processes Describe major elements of an Enterprise Framework Model 7 7

Objectives of EPM ABPMP § Define the large cross-functional business processes which deliver customer value § Articulate the organization’s strategy in terms of its cross-functional business processes § Assign accountability for the improvement and management of the organization’s crossfunctional processes (chapters 2 & 8) § Define the performance measures which matter to customers (chapter 7) § Define the organization’s level of performance in terms of these customer centric measures © ABPMP 8

Balanced Score Card is an Example of EPM Methodology ABPMP http: //www. balancedscorecard. org/bscresources/aboutthebalancedscorecard/tabid/55/default. aspx © ABPMP 9

Importance of EPM ABPMP • Provides customer centric view and accountability for performance • Helps build an organization of discipline • Provides an understanding of the work and roles across traditional org boundaries (e. g. knowing the business) • Equips management to “insist on realism” • Assists leaders in setting clear and realistic goals and priorities © ABPMP 10

Enterprise Process Frameworks ABPMP • Value Chain Group – Value Chain Reference Model (VRM) • Supply Chain Operations Reference (SCOR) • American Productivity & Quality Council (APQC) – Process Classification Framework • MIT Process Handbook Business Activity Model © ABPMP 11

ABPMP © ABPMP 12

Supply Chain Operations Reference © ABPMP 13

APQC – Process Classification Framework © ABPMP 14 http: //www. apqc. org/portal/apqc/ksn/PCF_5 x. pdf? paf_gear_id=contentgearhome

MIT Process Handbook Business Activity Model ABPMP http: //mitpress. mit. edu/books/chapters/0262134292 chap 8. pdf © ABPMP 15

Process Repository Management ABPMP • A central location for storing information about how an enterprise operates • Administration activities include: – – Create repository structure Define and maintain procedures for controlling changes Mapping processes to applications and data Providing infrastructure • Importance of repository administration – Ensures consistent communication – Maintains information to define, measure, analyze, improve and control business processes – Facilitates collaboration by enforcing a methodology focusing on end-to-end process © ABPMP 16

Key concepts: Enterprise Process Mgt ABPMP 1. Enterprise Process Management [EPM] assures alignment of the portfolio of end-to-end business processes and process architecture with the organization’s business strategy and resource allocation. It provides a governance model for the management and evaluation of initiatives 2. EPM is an essential management practice that provides the means for a company to create value for its customers 3. The role of measurement is indispensable to maintaining a customer centric focus and assuring accountability for the performance of the firm’s large cross functional business processes 4. EPM has three essential requirements: 1. A customer centric measurement framework, 2. An enterprise level process schematic, and 3. An enterprise level process improvement and management plan 5. Business processes must be associated to a clear strategy © ABPMP 17

Key concepts: Enterprise Process Mgt ABPMP 6. Successful process governance requires clear ownership and accountability assigned for each process 7. The role of the Process Owner is to monitor performance and lead the improvement and management of the processes 8. Process Owners must be given the means necessary to successfully manage the process 9. EPM can engage the entire organization in executing strategy by clearly defining and communicating the means to accomplish it 10. Process principles and practices positively influence leadership behaviors such as knowing the business, insisting on realism, setting clear and realistic goals and priorities, and rewarding the doers 11. Enterprise Process Management involves the transition from expressing strategy in general terms or in financial terms to expressing strategy in terms of observable cross-functional activity and requires a shift in mindset and a new set of leadership behaviors © ABPMP 18

CBPP SAMPLE QUESTIONS Birmingham Chapter 19 19

An Enterprise Process Model provides a framework to achieve A) fewer levels across the organization B) a simpler approach to managing processes C) the goal of vertical and horizontal collaboration D) a direction for successful Service Oriented Architecture 20

An Enterprise Process Model provides a framework to achieve A) fewer levels across the organization B) a simpler approach to managing processes C) the goal of vertical and horizontal collaboration D) a direction for successful Service Oriented Architecture 21

The primary objective of Business Process Portfolio Management does NOT include: A) Aligning project objectives with organization strategy B) Incentivizing successful project implementation C) Balancing risk among proposed projects D) Assessing process performance 22

The primary objective of Business Process Portfolio Management does NOT include: A) Aligning project objectives with organization strategy B) Incentivizing successful project implementation C) Balancing risk among proposed projects D) Assessing process performance 23

Enterprise Process Management (EPM) best practices do NOT require? A) Being clear on the definition of the process beginning and end B) Focusing on the process from the customer's point of view C) Establishing process performance goals based on key metrics D) Defining all aspects of the end-to-end plan prior to launch 24

Enterprise Process Management (EPM) best practices do NOT require? A) Being clear on the definition of the process beginning and end B) Focusing on the process from the customer's point of view C) Establishing process performance goals based on key metrics D) Defining all aspects of the end-to-end plan prior to launch 25

26