Business Process Management (BPM)

Session 4
BPM Governance
Organizations undertaking BPM initiatives are challenged with
high risks of failure without the foundations of a robust
Governance framework
ROI regarding BPM projects
• Gartner Research estimates that 107%
approximately 50% of BPM initiatives
fail due to lack of BPM governance
• Majority of organizations are unclear 44%
about how to integrate business process 26%
competencies with other Centres of 18%

Excellence and programs

Centre of Business No CoE or Average
• Most organizations only focus on skills Excellence Process Team process team Performance

that deal with process understanding and
technology and short change skills that
deal with organizational change and
transformation
• Lack of governance and transformation
capabilities are the biggest cause of
BPM project failures!
• Governance is an important theme when
setting up and executing BPM projects as
well as maintaining process excellence
• A Return On Investment analysis regarding
BPM projects reveals that the ROI for
organizations with a BPM CoE is significantly
higher than organizations without one

ROI 5 times greater with CoE

Source: Gartner Business Process Management Summit 2011
 3

Core components of Process Governance

Business Process Governance involves the following components:

 A high level identification of the company’s
main, cross-functional processes
 Clarity on the high level goals to frame the
definition of key performance indicators Process Governance
(KPI) of these business processes
 Accountability and ownership for the
improvement and management of Process Management
business processes
 Management of the knowledge about
processes (process models, etc.) Operational Process
 Aligned recognition and reward systems
 The set of priorities in improving key
business processes

Source: BPM-D
Copyright © BPM-D 2014 3
Where do you want to go? Organizational Types
Pure functional organization Functional organization/ Process Owners with
processes identified development authority

Process Owners with Process Owners with business Pure process organization
performance responsibility, responsibility, functions as
functions with resources competence centers

Source: Kirchmer, Hofmann, 2013. “Value-Driven Process Governance” in IM+io

 What is a BPM Center of Excellence?

A BPM Centre of Excellence is a group of individuals with well-defined and measureable BPM-
related objectives in an organization

A BPM CoE allows organizations to realize a range of benefits through the establishment of
organizational structures and procedures to more efficiently share knowledge, implement
standards, optimize resources, and manage central services relative to BPM.

The BPM CoE is responsible for a range of activities, including building and maintaining skills,
industry know-how and assets in order to provide education, consulting, development,
operations and support services.
A formal BPM organization pays off….

Of organizations that have implemented BPM

successfully:

94% had a formal Center of Excellence1 or process

management organization and of those, 67% said BPM
exceeded their expectations

The EA View: BPM has become mainstream, Ken Vollner, Forrester, October 2008
 7

Business Process Management Services

• Business Process Management Maturity Assessment
• Strategic Alignment
• Process Modeling
• Library Management
• Process Improvement
• Designing Process-Aware Information Systems
• Process Automation
• Process Change Management
• Management of Business Process Management Projects
• Process Governance
• Process Compliance
• Process Performance Measurement
• Process Forensics
• Process Management Education / Training
• Process Portfolio Management

Source: Michael Rosemann, The Service Portfolio of a BPM Center of Excellence

The Process of Process Management – The core of BPM
Governance

BPM Operations
BPM Maturity Process
Roadmap Governance
&Value Analysis Value Analysis

BPM Methods & Tools BPM Delivery BPM Transformation

Business Process Process Culture &
Architecture Strategy Analysis People Change Management

Process
Standards & Process Process BPM
Improvement
Guidelines Design Implementation Community
Methods

Process Process Program & Project

Repository BPM Systems
Execution Monitoring Management

BPM Support
Human Enterprise Information
Finance Procurement
Resources Services Technology (IT)

Source: Accenture, The Process of Process Management: Delivering the Value of Business Process Management
Roles of the BPM Organization 1/2

Role Responsibilities
Business process Oversees process from end-toend, identifies
owner improvements, approves any changes or new
project, top role in the governance area of the
PoPM
Business sponsor Champions business case and secures funding for
project
CoE leader Oversees BPM CoE, the head of the PoPM
Process architect Maintains knowledge, standards, and tools;
maintains business architecture
Process designer Performs process modeling
Application architect Designs technical architecture
Data architect Designs data integration
Change management Defines the change management strategy and
lead approach and manges its execution across the
organization
Roles of the BPM Organization 2/2

Delivery manager Selects project management methods and

approach
Partner manager Coordinates external partner
Project team member Drives process change in projects
Project portfolio Manages the portfolio of process improvement
manager projects
Project-related Accountable for meeting KPIs and ensuring
business stakeholders success of a BPM project

BPM business Accountable for building the BPM organization

stakeholders and the PoPM
Technical support Troubleshoots issues with specific tools
Repository Manages the repository from a tech/tool
administrator perspective
Business process Specializes in business process improvement
improvement expert techniques such as Kaizen or Lean/Six Sigma
Setting up a BPM Organization

Business Process CoE – Building blocks

Mission / Value Proposition Stake Holders / Expectations

Process Management Services (“Offerings”)

Operating Models and Process Definitions (“Process of Process

Management”)

Roles / Capability
Organization
Responsibilities Development

Standards and
Infrastructure Community
guidelines

Roadmap and Roll-out Plan

Source: Kirchmer: High Performance Through Process Excellence

Establishing a BPM Center of Excellence and the roles and
responsibilities within the extended process organization is
at the core of a BPM Governance approach
Advantages Disadvantages
Centralised • Standardisation and Consistency • “Doing to” and not “doing with”
• Build central expertise • Skills too concentrated
• Greater process visibility • Variable team utilisation
• Single point of contact

Decentralised • Business ownership • Organisation inconsistency

• Skills embedded in projects • Dependencies not visible
• Alignment • Diffused accountability
• Skills scattered

Hybrid • Knowledge reuse • Risk of inconsistency

• Access to expertise • Diffused contacts
• Utilisation of resources • More diffused accountabilities
• “Doing with” approach
BPM Governance Collaboration Model – Example

MEETING
PARTICIPANTS MEETING CADENCE

Operational Process Governance

President, GMs, GBPOs, BPE Global Business Process Board

2 x annually
IT, CI Meeting

GBPOs, VP BPE Global Business Process Quarterly

IT, CI Integration Council Meeting

Global Business Process Council

GBPOs, RBPOs, GBPLs, IT, CI Monthly
Meetings

Support

Process Management Capabilities

Governance
CPO, BPM CoE Lead, Global Business Process Monthly
GPOs, … Governance Board Meeting