Summary Session 17-18

Organizational Change and Business Process Reengineering (Session 17-18)

Organizational Project Management Maturity Model (OPM3)

•          Seeking to create a framework within which organizations can re-examine their pursuit of strategic objectives via Best Practices in organizational project management

•          The OPM3 model is a three-step continuous improvement process.

–        Step 1: Knowledge

–        Step 2: Assessment

–        Step 3: Improvement

Benefits of OPM3

•          Helps organizations identify and deliver the right projects to advance their strategy.

•          Improved project performance and return on investment - Isolates process improvements while forcing organizations to consider external pressures increasing operational and organizational efficiency

•          Helps the organization align its strategy with the projects that sustain business success

•          Mitigates operating costs by keeping projects aligned to business strategy

BPR Methodology

•          Preparation—Set goals and vision, identify teams, and develop an inventory of processes that need to be evaluated.

•          Define the “as is” process and evaluate cross-organizational issues.

•          Map out “to be” processes based on best practices (i.e., related to ERP).

•          Test and measure new processes based on meeting goals and vision.

•          Re-evaluation—revise, adjust to improve processes.

•          Preparation-Drivers behind the need for BPR:

•          Implementing a current purchased ERP system

•          Automating current manual or error prone processes

•          Improving service to customers

•          Streamlining current processes to decrease time to market

•          Participating in or conducting e-Marketplaces

•          Reducing costs

•          Addressing accountability

•          Conducting e-Procurement

•          “As Is”

•          Working with the vision and goals, the functional teams must define the existing processes.

•          Need both a written description and graphical depiction of each and every process.

•          “To Be”

•          This phase addresses timing of processes and the changes needed to meet the original set of goals.

•          Testing and Measurement

•          The testing and validation of each process is necessary to ensure that a step was not missed or that a process was not achievable.

Business Process Management

•          BPM can be defined as:

–        “A management discipline that treats processes as assets that directly contribute to enterprise performance by driving operational excellence and business process agility”

–        BPM employs methods, policies, metrics, management practices and software tools to continuously optimize the organization processes to improve business performance against goals and objectives

Difference between BPR and BPM

 Best Practices of BPM

•          BPM systems help managers in understanding the working of the business processes better so as to manage them more efficiently

•          Successful BPM implementation requires separating the following:

–        Human Intensive Processes - These processes are also known as “knowledge work.” They depend on people to do the work.

–        System Intensive Processes - These processes involve a large number of automated transactions each day that do not require human judgment

Benefits of Implementing BPM

•          BPM software aids in facilitating communication and synchronization resulting in high productivity.

•          The employees become more efficient, because the workflow bottlenecks are removed using BPM software and thereby reducing the idle time of the employees.

•          BPM software helps companies to cut costs.

•          Employees feel better to work in an organized business processes architecture that was created using BPMS.

•          Improved workflow results in better-quality products and services and thus makes customers happy.

Major Features of BPM

•          Process modeling and simulation—Users can use the software to design processes that need automation.

•          Systems integration—BPM software lets other information systems like ERP to be connected to the processes, and hence information can flow between the systems.

•          User interaction and collaboration—BPMS has Web forms and other user interfaces to help the user to enter inputs and make other changes to the process.

•          Process execution and monitoring—BPMS lets job to be routed through the process steps and sends notifications electronically and also tracks performance indicators of processes.

The Four Rs of Process

•          Roles—establishing a set of defined user roles that will not change with employee absences or departures

•          Relationships—identifying the interactions necessary to complete a process

•          Rules—developing a fixed set of process steps that will be followed in most situations

•          Routing—electronically transferring forms and documents for review, approval, and so on.