BPM Center of Excellence

BPM 105: BPM
Centers of Excellence
SANDY KEMSLEY

Copyright © 2009 BPMbasics. All rights reserved. Copyright © 2009 BPMbasics. All rights reserved.

Agenda

Economic drivers for BPM
Why create a BPM CoE?
What is the value of a CoE?
How do you build a CoE?
Case study example

Copyright © 2009 BPMbasics. All rights reserved.

BPM Economic Drivers
Economic conditions mandate
operational efficiency and cost reduction “Gartner estimates the BPMS
market. . .is one of the
fastest-growing segments in
Related compliance and risk
software, and it is forecast to
management scrutiny driving standards
remain so during the next five
and policies enforcement
years. Many organizations are
now focused on making BPM
Satisfying customers on-demand, with a program, not just a
agility to respond to competitive threats project.”
and constant change
-- Gartner: "Hype Cycle for
Application Development, 2008",
Visibility, transparency, governance & July, 2008
controls more important than ever


More Urgency Now Than Ever

“ "Particularly in light of today’s volatile economy, organizations
are looking to trim the fat off their operations. In a receding
market, process agility is an objective that organizations strive
for. In order to leverage business opportunities with a short
window of execution, an organization must be able to adapt its
processes quickly and efficiently.“

BPM and Beyond: The Human Factor of Process Management, October 2008

Source: Aligning IT to Business Processes: How BPM is Complementing ERP and Custom Applications, Aberdeen Group, May 2007


Why Create A BPM CoE?

Benefits and drivers for a Center
of Excellence


Expected Benefits of a CoE

Knowledge transfer
Synergies between
BPM projects
Shared code and
components for
increased reusability
Results:
– Faster deployments
– Lower costs
– Standardized, repeatable
BPM projects


Measuring the Impact

Forrester survey, October 2007:
– “What impact have BPM efforts had on
your enterprise to date?”
– “Did the BPM project deliver on your
organization’s expectations or goals?”
– “Has a team been created to provide BPM
guidance?”

– Source: “The EA View: BPM Has Become Mainstream”, Forrester Research Inc., February 19, 2009


CoE Correlates with Business Improvement

Forrester survey results:
– Of the companies experiencing clear,
measurable improvement due to BPM,
49% have a CoE
– Of the companies that have had no
success with BPM, 4% have a CoE


Forrester’s Summary

“Clearly, while a BPM COE may not be
a panacea for BPM success, having
one in operation significantly increases
the odds of BPM success.”


CoE Correlates with BPM Success

Forrester survey results:
– Of the companies stating that BPM
exceeded their goals significantly, 67%
have a CoE
– Of the companies stating that BPM failed to
meet their goals, 14% have a CoE


What Is The Value of a BPM CoE?

Functions that the Center of
Excellence provides


Skills

BPM knowledge and skills
that are too rare to maintain
in each project
– BPM methodology
– Process engineering
– BPM tool usage
Mentoring and project-
specific advice
Training and skills transfer to
project

Governance

Creating common BPM principles and
methodologies
Ensuring that principles and
methodologies are used


Repository

BPM training materials
– Process specialists on projects
– Process participants
Best practices and techniques
Common code/components
Shared (sub)processes


Community

Shared ideas and problem-solving
Better view of end-to-end processes
across enterprise
Potential to combine common
processes
Promoting shift from departmental to
enterprise scale projects


How Do You Build a BPM CoE?

Center of Excellence roles and
models


Basics of Creating a CoE

Executive sponsorship and involvement
Establish a BPM methodology independent of
technology
– Terms and definitions
– Standards
– Best practices
– SOA alignment
Co-locate the expertise and define roles and
responsibilities
– Business and technical
– Practical and visionary


Roles

Chief Process Officer or process czar
Steering committee
Project manager
Enterprise architect
Business process analyst/process architect
BPM developer
Process modeler
User Acceptance Testing (UAT) and Quality
Assurance (QA)
BPM software administrator


Skills

Process architecture expertise
Platform management
Education and training
Best practices development
Technical patterns development
Vendor product expertise
BPM industry and standards expertise
Implementation methodology
Process registry and repository


Case Study

The “Accidental” BPM CoE


Investment Management Company
$49B assets under management, 1 million investors

Business Challenges: BPM Solution:
Streamline Credit Fulfillment Increased control over
and Credit Servicing human-centric, mission-
processes critical processes
Support continuous Incoming documents trigger
improvement loan origination process,
Risk management using OCR to auto-index and
Provide firm foundation for route
business growth Conversion of 650,000+
Improve compliance documents from legacy
system
Improved risk management
and compliance practices


No “Formal” Institution of a CoE, But…

After initial deployment, key players continued to
monitor success, optimize and look for expansion
opportunities
Lead: owner responsible for BPM strategic direction
From the business:
– Business process designers
– Release project manager
– QA lead
From IT:
– Solution architect
– System administrator
– Lead developer


Informal CoE Drove New BPM Initiatives

Prioritize feature requests
End user training/communication
Release management framework
Process application best practices
Social networking to facilitate adoption
Knowledge base
Knowledge transfer sessions


Business Value Created by CoE

Bridge communication gap between
conflicting business and IT groups
Improved efficiency in BPM
development and release


Models for a CoE

Small “accidental” CoE
Large internal build
Virtual CoE with external portions on
vendor or independent site


Summary and Key Takeaways

Benefits and drivers for a BPM CoE
CoE functions
CoE roles and skills
Case study: grassroots CoE


Thank You

BPM Basics is your online resource center for BPM.
www.BPMbasics.com
info@bpmbasics.com

Appian is a global innovator in business process management
software suites.
www.appian.com
info@appian.com

27 Copyright © 2009 BPMbasics. All rights reserved.

BPM Center of Excellence

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