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An Overview for OMG Members
Dr. John Alden ± Managing Partner Dr. Bill Curtis ± Chief Scientist
Kick off, introductions and purpose-John Alden Overview of BPMM-Bill Curtis Fit with OMG standards-John Alden Discussion-all*
* Questions and comments forward to:
email@example.com Or IM·s: Yahoo: johnwalden1019 AIM: aldensails
© Capability Measurement, 10-2006
OMG standards relationships: Business targeted standards: BMM OSM BPMN Organizational Capability: BPMM People CMM (SEI) Other standards for measurement: ITIL. and CMMI(SEI) SBVR Software targeted standards: SPEM BPDM MDA/MOF/UML © Capability Measurement. 10-2006 3 . COBIT.
The Ecology of Failed Systems Lack of measures & defined processes Work overloads Siloed functional processes Inconsistent materials Cascading rework Unintegrated best practices 4 Unmanaged commitments Inconsistent procedures for identical tasks © Capability Measurement. 10-2006 .
Deming SPC & PDCA System Eng.History of Maturity Models Crosby·s Quality Maturity Grid Humphrey·s Process Maturity Framework CMM for Software Acquisition CMM Shewart. 10-2006 Business Process MM 5 . CMM People CMM CMMI Developed by two authors of the CMM for Software © Capability Measurement.
Growth Organizational Capability 6 Locus of Transformation © Capability Measurement.Maturity Model Typology Prescriptive practices CMMI Continuous COBIT Maturity Ratings ITIL Maturity Ratings CMMI People Staged CMM Business Process MM Descriptive states Level of Implementation Detail SOA MMs Crosby Quality Maturity Grid Process maturity ITIL Org. 10-2006 .
10-2006 .The Five Maturity Levels Level 5 Optimizing Change management Level 4 Capability Predictable management Level 3 Business line Standardized management Level 2 Managed Level 1 Initial Work unit management Inconsistent management 7 © Capability Measurement.
measures. bottlenecks Ad hoc methods Hero worship 8 Level 4 Predictable Develop standard processes. and training for Standardized product & service offerings Level 3 Level 2 Managed Build disciplined work unit management to stabilize work and control commitments Motivate people to overcome problems and just ³get the job done´ Level 1 Initial © Capability Measurement. Reduced variation Productivity growth Effective automation Economies of scale Reduced rework Repeatable practices Satisfied schedules Mistakes.How the BPMM Works Level 5 Optimized Implement continual proactive improvements to achieve business targets Manage process and results quantitatively and exploit benefits of standardization Capable processes Perpetual innovation Change management Predictable results Reuse/knowledge mgt. 10-2006 .
Practices SP1: Identify requirements SP 2: Clarify requirements SP 3: Evaluate requirements for implementation SP 4: Negotiate requirements SP 5. 10-2006 9 .Structure of the BPMM Level 5 Level 4 Level 3 Level 2² Managed Level 1 Maturity Levels Level 2 Process Areas Organizational Business Goverance Organizational Process Leadership Work Unit Requirements Mgt. Work Unit Planning and Commitment Work Unit Monitoring & Control Work Unit Performance Sourcing Management Work Unit Change Management Process and Product Assurance Work Unit Requirements Mgt. Maintain agreed to requirements SP 6: Conduct regular requirements review In 1: Describe the process In 2: Plan the process In 3: Provide knowledge and skills In 4: Control the process In 5: Objectively assure adherence © Capability Measurement. Goals SG1: Requirements are identified and evaluated SG2: Requirements baseline is maintained InG: Process is institutionalized Work Unit Requirements Mgt.
10-2006 10 .µ Process Description Process Planning Process Area Specific Practices (Implementation) Monitoring & Control Process Assurance Skills & Training © Capability Measurement.Institutionalizing Practices ´The practices for [process_area] are institutionalized.
10-2006 .Level 1 ± Initial Organizations Undisciplined Few repeatable processes. often sacrificed under pressure People rely on personal methods for accomplishing work Little preparation for managing a work unit Few measures for analyzing effectiveness of practices No foundation or commitment for improvement 11 Individualistic Inconsistent Inefficient Stagnant © Capability Measurement.
10-2006 12 .Initial Organizations © Capability Measurement.
10-2006 .Level 2 ± Managed Organizations Committed Executives commit organization to improving operations Managers take responsibility for work unit operations & performance Commitments are balanced with resources Work units use local procedures that have proven effective Work units are capable of meeting their commitments 13 Proactive Managed Repeatable Responsible © Capability Measurement.
10-2006 Staff Process and Product Assurance 14 .Level 2 Process Areas Organizational Business Governance Organizational Process Leadership Work Unit Requirements Management Managers Work Unit Performance Work unit members Sourcing Management Work Unit Change Management Work Unit Monitoring and Control Work Unit Planning and Commitment Executives © Capability Measurement.
Level 3 ± Standardized Organizations Organizational Integrate end-to-end business processes across siloed functions Establish standard processes from best practices in work units Standard processes tailored for best use in different circumstances Common measures and processes promote organizational learning Organizational culture emerges from common practices 15 Integrated Adaptable Leveraged Professional © Capability Measurement. 10-2006 .
3.Levels 2 to 3 Transition Enterprise-wide end-to-end. 10-2006 16 .Do this first Do this next 1. Do this last Procedures Procedures Procedures Do this Do this Do that Do that Procedures Procedures Procedures Procedures Work Unit 1 Work Work Work 2 Unit Unit 2 Unit 2a Work Unit 3 Work Work Unit 4 Unit 4a Work Work Work 5 Unit Work 5 Unit Unit 5 Unit 5a Level 2 © Capability Measurement.Do this next Do thisthis last Do first 2. Do this first 1. 3. integrated business process Work Unit 1 Work Unit 2 Work Unit 3 Work Unit 4 Work Unit 5 Standard Process Tailored Process This is a process description derived from the local method of doing it Level 3 Confederated work units Procedures This is a process description derived from the local method of doing it Procedures Procedures Procedures 1. 2.2. Do this last Do this next 3.
10-2006 .Level 3 Process Areas Staff Work unit members Organizational Process Management Organizational Competency Management Organizational Resource Management Configuration Management Product and Service Operation Product and Service Support Product and Service Preparation Product and Service Deployment Product and Service Management Managers 17 © Capability Measurement.
10-2006 18 .Domain Specific Process Areas Market Evaluation Product Specification Market Communication Product and Service Preparation Product and Service Deployment Sales Support Marketing Management Product and Service Operation Product and Service Support Collection & Dispersement Financial Governance Product and Service Management Financial Reporting Financial Modeling & Projection Finance Management © Capability Measurement.
Level 4 ± Predictable Organizations Quantitative Process variation. Process data empowers staff to manage their own work Stable Empowered MultiMulti-functional Functional processes reengineered as roles in business processes Predictable © Capability Measurement. performance. mentoring. and capability understood quantitatively Variation reduced through reuse. 10-2006 Outcomes predictable from subprocess capability & performance 19 . & statistical mgt.
10-2006 .Level 4 Process Areas Staff Organizational Capability Management Business Process Integration Organizational Common Asset Management Managers Quantitative Process Management Quantitative Business Management 20 Work unit members © Capability Measurement.
10-2006 .Level 5 ± Optimizing Organizations Proactive Improvements planned to achieve business strategies & objectives Improvements evaluated and deployed using orderly methods Individuals and workgroups continuously improve capability Performance aligned across the organization Defects and problem causes systematically eliminated 21 Systematic Continual Aligned Preventative © Capability Measurement.
Level 5 Process Areas Executives Organizational Improvement Planning Staff Work unit members Defect and Problem Prevention Organizational Process and Product Innovation Organizational Improvement Deployment Continuous Capability Improvement © Capability Measurement. 10-2006 Organizational Performance Alignment 22 .
installation.BPMM Pilots International Bank Objectives: y Achieve cost reductions y External recognition for efficiency and low risk Health Care Services Objectives: y Reduce billing errors y Provide framework for 6W and business process reengineering Semiconductor Equipment Objectives: y Integrate improvement activities y Extend process maturity benefits to every business process Gaming Objectives: y Integrate development. & support processes y Improve efficiency of operations © Capability Measurement. 10-2006 23 .
Transforming the Culture Level 3 Level 5 Proactive Improvements. Agile culture Organization Organization develops standard processes. establish discipline & stability. Empowered culture Individual Ad Hoc processes. inconsistent results. 10-2006 24 . Engineering culture Level 2 Level 4 End-to-end process managed statistically. Commitment culture Trust Level 1 Level 5 Opportunistic Improvements. Precision culture Work unit Project mgrs. Hero-driven culture © Capability Measurement.
The immaturity of business processes strictly limits the value and success of IT systems 2. The Business Process Maturity Model enables greater fidelity between the actual performance of business processes and their model-based representations © Capability Measurement. The process maturity framework is a proven roadmap for improving process capability and unlocking the full value of IT systems 3.Summary 1. 10-2006 25 .
com Or IM·s: Yahoo: johnwalden1019 AIM: aldensails © Capability Measurement.Agenda Kick off. 10-2006 26 . introductions and purpose-John Alden Overview of BPMM-Bill Curtis Fit with OMG standards-John Alden Discussion-all* * Questions and comments forward to: johnwalden@capabilitymeasurement.
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