ew10 keynote

Outside-In – The Key To Success In

The 21st Century: the what

Architecture World 10

Enterprise BPM Improve efficiency and customer service, increase revenue and reduce costs

Conference Keynote

Steve Towers

BP Group


The 21st Century: the how



Track Session

Steve Towers

BP Group

“It’s true the

questions

Are the

same…

But this year

the answers

Are very

different”

www.stevetowers.com

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Outside-In – The Key To Success In The 21st Century: the what

How to uncover significant opportunities for improving processes permanently:

• Four key ‘hands-on’ techniques that can be used and deployed immediately

• How shifting the focus to ‘outside-in’ can transform complex processes

• The means to redefine ANY process through the use of a proven, pragmatic method

• How processes can be harnessed for strategic long-term advantage

• How Performance Management can be linked to process to achieve successful outcomes

• The importance of the Business Process Professional in guiding your business to success



Conference Keynote

ENTERPRISE

BPM ENTERPRISE

ARCHITECTURE

ENTERPRISE

BUSINESS

ARCHITECTURE

Customer

Orientation

Rewards &

Remuneration

Organisation

Structure

Strategic

Transformation

Enterprise

Strategy

Process

Metrics

Process

Maturity

Process

Ownership

Process

Standards

Process

Models

Process

Analytics

BPM

Technology

Complexity

Management

Process

Tools & Techniques

Infrastructure

Services

Information

Standards Service

Definitions

Architecture

Principles

Software

Standards

Repository

Management

Systems

Integration

Architecture

Metrics

EBPM & EA Are Peas in the Same Pod. Growing each other to achieve Outside-In.

CPP 12 India July 2010

We have inherited an industrial legacy in thought and

action – what shape are you in?


CEO

Marketing Sales Customer Service

Operations Finance

Our organisations all look the same...


CEO


Operations Finance

Processes wend and meander their way around these

rigid structures...


CEO


Operations Finance

And hey ho – we nearly forgot the customer!

Now where do they go?


The typical car contains about 2,000

components, 30,000 parts and 10 million

lines of software code. (John Paul McDuffie, HBR June 2010)

And things have become very complicated


MORE COMPLEX THAN A FIGHTER JET

Safety regulations and consumer demand for performance and convenience

Have led to an exponential spike in cars’ software complexity.

100M AVERAGE LUXURY AUTO

20M NAVIGATION SYSTEM IN 2009 S-MERCEDES-BENZ

10M AVERAGE 2010 FORD AUTO

6.5M

5.7M

1.7M

BOEING 787 DREAMLINER

U.S. AIR FORCE F-35 JOINT STRIKE FIGHTER

U.S. AIR FORCE F-22 RAPTOR JET

LINES OF SOFTWARE

CODE IN FORD VEHICLES

(MILLIONS)

2.4M

6M

10M

2005 2009 2010

SOURCES IEEE: AUTOMOTIVE DESIGNLINE

Some

recent

observations

The red tape is

strangling

us….

It is not a pretty

picture

Clerical Officer

Child Support Agency

Harry Fletcher, National Association of Probation Officers

“Only 24% of a Probation Officers time is spent in face to face contact

with their subjects. The rest goes on form filling and reporting”

A third could be shaved

off the annual £4.5bn

cost of quangos and NHS

management in England.

Health secretary

Andrew Lansley

“More than 70% of

nurses time is spent

away from the patient”

Police bureaucracy is indeed

grotesque - at any one time, out of a

command unit of about 350 officers,

just 10 will be out policing, the rest

behind desks recording data and

form-filling - a colossal waste of

resources that urgently needs

pruning.

But it is a symptom, not a cause, and

palliatives such as 'civilianisation'

(recruiting civilian pen-pushers to

take the place of officers behind

desks)

or less intensive incident recording

are making the situation even worse.

Sir David Normington

UK Top Civil Servant


On the Down

Inside-out

The biggest enemy of thinking is complexity, for that leads to confusion. Edward de Bono


On the Up with Outside-In


Apple sees things

differently

$25,000 a minute PROFIT

Tony Hsieh


Why should we bother?

Because the answers

are very different !

Inspiration:

Udayan Banerjee

CTO,

NIIT Technology (India)

And…

“We can‟t solve

problems using the

same kind of

thinking we used

when we created

them”

This is a Copernican Moment

Copernicus - 19 February 1473 – 24 May 1543

He died 467 years ago

Enquire about a trip

Navigate to the airport

Experiencing hospitality

Baggage transportation

Enjoying the trip Relaxing in the

hotel Returning Home

Enjoying a Coffee at Home

The

Customer Experience

is the Process

A new perspective.. It‟s a seismic shift in focus


Enterprise Business Process Management

A method of managing

an organisation by

understanding and delivering

Successful Customer Outcomes. It is also referred to as „Outside-In‟


Four proven ways to move Outside-In

1. Examine where your process

starts and finishes

2. Understand and Apply Process

Diagnostics

3. Articulate Successful Customer Outcomes

4. Determine What Business You are in


Understand & Develop

Successful Customer Outcomes

Create Process Activity

List

PROCESS DIAGNOSTICS

Identify Moments of

Truth

PROCESS DIAGNOSTICS

Identify

Breakpoints

PROCESS DIAGNOSTICS

Identify Business

Rules

Perform Risk

Assessment

Develop Action Plan

Manage Delivery


Where does your

process start and

finish?








Where does the process start and finish?

Shifting our focus to the Customer Experience and improving that

Through Moments of Truth, Breakpoints & Rules lets us

FIX the Causes of Work and REMOVE the Points of Failure

Outside In– Successful Customer Outcomes

Focus on Doing the Right Thing and Doing Things Right


Looking at the Process Outside-In Achieves dramatic internal benefits

(typical 40-70%

cost savings)

and extends

our value chain

Enquire about a trip Navigate to the

airport Experiencing hospitality

Baggage transportation Flying the airplane Enjoying the trip Relaxing in the hotel



Check Out & ……..





Flying the airplane




Gee..

Wouldn‟t it

be great If

as I checkout

of the hotel…


Why should we bother?

Outside-In is winning in terms of Revenue,

Profitability & Customer Service $6.4 Bn First Quarter LOSS

$537 M First Quarter LOSS

Apr. 23--United Airlines said Tuesday that it would eliminate 1,100 jobs

…..it would reduce capacity by shedding 30 airplanes, UAL shares

plummeted 37 percent to $13.55

Houston-based Continental Airlines Inc.

reported Apr 17 that it lost $80 million

$80 M First Quarter LOSS Apr. 18--Southwest Airlines Co. said Thursday

it earned $34 million in the first quarter

Southwest now plans to take delivery of 14

new Boeing 737-700 aircraft next year

$34 M First Quarter PROFIT

58 Successive Quarters

of PROFIT

$4.1 Bn First Quarter LOSS




starts and finishes


Diagnostics



DISCOVERY

ASSESSMENT

REVIEW

EXECUTE

ww

w.cem

meth

od.com


Twen

ty O

I Qu

anti

fiab

le E

lem

ents

(Lev

els

1-5)

Element Always Discretionary Levels

Process Activity Map (PAM) Y 1-2-3-4

Process Diagnostics Y 1-2-3-4

Risk Assessment Y 1-2-3-4

Action Plan Y 1-2-3-4

Actions Taken Y 1-2-3-4

POF Dependencies Y 1-2-3-4

Points of Failure profile Y 1-2-3-4

Future State PAM Y 1-2-3-4

Risk Impact Assessment Y 1-2-3-4

Validated Process Activity Map Y 2-3-4

SCO Mind Map Y 2-3-4

Validated Process Diagnostics Y 2-3-4

Innovation Landscape Y 3-4

SCO Statement Metrics Y 3-4

Process Performance Landscape Y 3-4

Performance Management Scorecard Y 4-5

OI Strategy Map Y 4-5

IT Opportunities matrix Y 4-5

Individual Scorecard Y 4-5

SCO Capabilities Overview Y 4-5

MOT

BP

BR

Performance. Agility & Quality are driven by...

Can You Imagine How Different Things Would Be?

MOT

MOT MOT

MOT MOT

MOT MOT MOT

Any interaction with the CUSTOMER

is a

MOMENT OF TRUTH

MOT

MOT MOT

MOT MOT

MOT MOT MOT

And every

MOMENT OF TRUTH Ripples and reverberates through the organisation

MOT

MOT MOT

MOT MOT

MOT MOT MOT

And

MOMENTS OF TRUTH Create complexity, cost, wastefulness and failure

MOT

MOT MOT

MOT

MOT

MOT MOT

MOT THE CAUSE OF WORK

THE EFFECT

It‟s all about Customer Experience and the

Moment of Truth. Remove or Improve!

Steve Jobs




starts and finishes


Diagnostics



DISCOVERY

ASSESSMENT

REVIEW

EXECUTE

ww

w.cem

meth

od.com


Stages in the approach

Understand & Develop

Successful Customer Outcomes

Create Process Activity

List

PROCESS DIAGNOSTICS

Identify Moments of

Truth

PROCESS DIAGNOSTICS

Identify

Breakpoints

PROCESS DIAGNOSTICS

Identify Business

Rules

Perform Risk

Assessment

Develop Action Plan

Manage Delivery


Understand & Develop Successful Customer Outcomes

TOOLS

Layer 1:

Who is the

Customer?

Layer 2:

What is the

Customers current

Expectation?

Layer 3: What is the process

the customer thinks they are

involved with?

Layer 4:

How does what

We do impact

Customer

Success?

Layer 5:

The Successful

Customer

Outcome – what does

the customer really

need from us?

The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a

process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy

inside-out thinking to create an actionable strategic and operational objective for the entire organisation.

CRAFTING THE

SUCCESSFUL CUSTOMER OUTCOME

Understanding the real Customer Need

The One liner SCO:

One line statement

that explains the

actual SCO


Who said this? (Inspired SCO thinking)

“You can't always get what you want But if you try sometimes you might find You get what you need”


Applying for a University Grant

TOOLS

Layer 1:

Who is the

Customer?

Layer 2:

What is the

Customers current

Expectation?



involved with?

Layer 4:

How does what

We do impact

Customer

Success?

Layer 5:

The Successful

Customer


the customer really

need from us?




CRAFTING THE



The One liner SCO:

One line statement

that explains the

actual SCO


The Successful Customer Outcome

SCO

Student

What is the

Customers current

expectation?

What is the process the

customer thinks they are

involved with?

Who is my

Customer?

How does what we do

impact Customer

Success?

The SCO - what

does the

customer

REALLY want

from us?

EDUCATION LOAN APPLICATION

Who is My Customer?

We must be careful here. What we are trying to do is identify the category of people who are likely to be our customer, and who we want to be our customer.

This could be “people wishing to take classes” or “people desiring an education” but…

“students” is a very good answer because it defines that group of people who are most likely to be consumers of the “financial aid process.”



SCO

Student

What is the

Customers current

expectation?

There will be problems,

but I should eventually

get my financial aid

I must go through the

financial aid process to

get Aid



involved with?

Who is my

Customer?

How does what we do

impact Customer

Success?

The SCO - what

does the

customer

REALLY want

from us?



SCO

Student

What is the

Customers current

expectation?

There will be problems, but I

should eventually get my

financial aid

I must go through the financial

aid process to get Aid

Getting an education

Building a Successful

career

Earning a degree



involved with?

Who is my

Customer?

EDUCATION LOAN APPLICATION

What is the process the Customer thinks they are involved with?


Building a successful career

Earning a degree

This is a major step beyond traditional process management techniques.

This part of SCO Mind Mapping moves us towards the “outside-in” perspective where we can uncover how the process really effects the customer.



SCO

Student

What is the

Customers current

expectation?

There will be problems, but I

should eventually get my

financial aid

I must go through the financial

aid process to get Aid


Building a Successful career

Earning a degree



involved with?

Who is my

Customer?

Determine if a student can graduate

Determine if a student can

afford the class

Determine when a student

can register

How does what we do

impact Customer

Success?



SCO

Student

What is the

Customers current

expectation?

There will be problems,

but I should eventually

get my financial aid

I must go through the

financial aid process to

get Aid


Building a Successful

career

Earning a degree



involved with?

Who is my

Customer?

Determine if a student can graduate

Determine if a student can afford

the class

Determine when a student can

register

How does what we

do impact Customer

Success? I need to receive my financial

assistance

I need to receive aid before the

semester starts

I need to attend the classes I have

chosen

I do not want to call to chase progress

I need to receive the correct amount

I do not want to have to fix your

mistakes

The SCO -

what does

the customer

REALLY need

from us?

THESE THINGS ARE MEASUREABLE

THESE THINGS ARE PERSONAL

THESE THINGS ARE OUTSIDE-IN


Understand & Develop Successful Customer Outcomes

TOOLS

Layer 1:

Who is the

Customer?

Layer 2:

What is the

Customers current

Expectation?



involved with?

Layer 4:

How does what

We do impact

Customer

Success?

Layer 5:

The Successful

Customer


the customer really

need from us?




CRAFTING THE



The One liner SCO:

One line statement

that explains the

actual SCO


Define the Successful Customer Outcome Map

TOOLS

Layer 1:

Who is the

Customer?

Layer 2:

What is the

Customers current

Expectation?



involved with?

Layer 4:

How does what

We do impact

Customer

Success?

Layer 5:

The Successful

Customer


the customer really

need from us?




CRAFTING THE



The One line SCO:

One line statement

that explains the

actual SCO




starts and finishes


Diagnostics




Understand the business you are in


What business are you in?

Inside-Out

Hallmark Cards

Gilead Sciences

BMW

Southwest Airlines

Your company

Perspective Shift… what

did the founders want

from their business?

Outside-In… a new focus,

a complete vision


SUCCESSFUL CUSTOMER OUTCOMES

CUSTOMER OUTCOMES

OUTCOMES

OUTPUTS

ACTIVITIES

TASKS

Process Performance

Landscape

Oc Oc Oc

CO CO

SCO

Customer


In Outside-In

all work is

aligned to

achieving

Successful

Customer

Outcomes


CPP Level Objective Attainment Designation

7

Leadership Master CPP Champion

6

Strategy Master CPP Master

5 Integrate Master CPP 5

4 Perform Professional CPP 4

3 innovate Professional CPP 3

2 Align Professional CPP 2

1 Optimise Practitioner CPP 1

CEMM Engineer Engineer CEMM (E)

Community

Everyone

Business Analyst

Process Managers

Technologists

Senior Managers

Leaders

Certification Notes:

InClass Assessment One Day

Testing Online – within 6 months of class

Case Studies Two required – may be historic

Client Interview By agreement

Peer Review By agreement

Experience Proven qualification, time in post

Ongoing Notes:

Certification Renewal Webinars, Approved Conferences, Projects

Experience Proven qualification, time in post

Business Process Professional pathway Leading to the Certified Process Professional (CPP)

Open and in-house formats on a global basis

Delivered through the BP Group Associate network.

For the latest programme visit www.bp2010.com

© MMX BP Group The BP Group, Mayfair House, 14-18 Heddon Street, Mayfair, London W1B 4DA UK | The BP Group,10685-B Hazelhurst Dr. 8602, Houston, TX 77043 US


नमसत

adeus

afscheid

Totsiens

Tack

Bedankt

Terima Kasih

Gracias Kiitos

Tak

Thank You

Grazie

Bedankt

Takk

Obrigado

Vielen Dank

再見 작별 인사

tam biêt

до свидания αντίο

Auf Wiedersehen


The 21st Century: the what


Enterprise BPM10 Improve efficiency and customer service, increase revenue and reduce costs

Conference Keynote

Steve Towers

BP Group

ew10 keynote

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