Transcription
The Business ProcessMaturity Model (BPMM)An Overview for OMG MembersDr. John Alden – ManagingManaging PartnerPartnerDr. Bill Curtis – ChiefChief ScientistScientist 2006
Agenda 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:johnwalden@capabilitymeasurement.comOr IM’s:Yahoo: johnwalden1019AIM:aldensails Capability Measurement, 10-20062
OMG standards relationships:OrganizationalCapability:Business targetedstandards: BMMBPMM OSM BPMN People CMM (SEI) Other standards formeasurement: ITIL, COBIT, andCMMI(SEI) Capability Measurement, 10-2006 SBVRSoftware targetedstandards: SPEM BPDM MDA/MOF/UML3
The Ecology of Failed SystemsLack ofmeasures& sistentprocedures foridentical tasks Capability Measurement, 10-2006CascadingreworkUnintegratedbest practices4
History of Maturity ModelsCrosby’sQualityMaturityGridSystemEng. CMMHumphrey’sProcessMaturityFrameworkCMM forSoftwareAcquisitionCMMCMMIDeveloped by two authorsof the CMM for Software Capability Measurement, 10-2006Shewart,DemingSPC &PDCAPeopleCMMBusinessProcessMM5
PrescriptivepracticesMaturity Model TypologyDescriptivestatesLevel ofImplementationDetailCMMIContinuousCOBIT MaturityRatingsITIL MaturityRatingsCMMI PeopleStaged CMMBusinessProcess MMSOA MMsCrosby QualityMaturity GridITIL ocus of Transformation Capability Measurement, 10-20066
The Five Maturity LevelsLevel 5OptimizingChangemanagementLevel 4CapabilityPredictable managementLevel 3Business lineStandardized managementLevel 2ManagedLevel 1InitialWork unitmanagementInconsistentmanagement Capability Measurement, 10-2006Conim tinupr prov ouslac in ytic gesQuanma titapr nag tivelactic ed yesStbe andst ardprac izedticesReppr eatac abtic lees7
How the BPMM WorksLevel 5OptimizedLevel 4PredictableImplement continualproactive improvements toachieve business targetsCapable processesPerpetual innovationChange managementManage process and resultsquantitatively and exploitbenefits of standardizationPredictable resultsReuse/knowledge mgt.Reduced variationDevelop standard processes,measures, and training forStandardized product & service offeringsLevel 3Level 2ManagedLevel 1InitialProductivity growthEffective automationEconomies of scaleBuild disciplined work unitmanagement to stabilize workand control commitmentsReduced reworkRepeatable practicesSatisfied schedulesMotivate people to overcomeproblems and just “get thejob done”Mistakes, bottlenecksAd hoc methodsHero worship Capability Measurement, 10-20068
Structure of the BPMMLevel 5Level 4Level 2Process AreasLevel 3OrganizationalBusiness GoveranceLevel 2—OrganizationalProcess LeadershipManagedWork UnitRequirements Mgt.Level 1Work Unit Planningand CommitmentMaturityLevelsWork UnitMonitoring & ControlWork UnitPerformanceSourcingManagementWork Unit ChangeManagementProcess and ProductAssuranceWork UnitRequirementsMgt. GoalsSG1: Requirementsare identified andevaluatedSG2: Requirementsbaseline ismaintainedInG: Process isinstitutionalizedWork UnitRequirementsMgt. PracticesSP1: Identify requirementsSP 2: Clarify requirementsSP 3: Evaluate requirementsfor implementationSP 4: NegotiaterequirementsSP 5; Maintain agreed torequirementsSP 6: Conduct regularrequirements reviewIn 1: Describe the processIn 2: Plan the processIn 3: Provide knowledge andskillsIn 4: Control the processIn 5: Objectively assureadherence Capability Measurement, 10-20069
Institutionalizing Practices“The practices for [process area]are nitoring& ControlProcessAssuranceSkills &Training Capability Measurement, 10-200610
Level 1 – Initial OrganizationsUndisciplinedFew repeatable processes, oftensacrificed under pressureIndividualisticPeople rely on personal methodsfor accomplishing workInconsistentLittle preparation for managinga work unitInefficientFew measures for analyzingeffectiveness of practicesStagnantNo foundation or commitmentfor improvement Capability Measurement, 10-200611
Initial Organizations Capability Measurement, 10-200612
Level 2 – Managed OrganizationsCommittedExecutives commit organizationto improving operationsProactiveManagers take responsibility forwork unit operations & performanceManagedCommitments are balanced withresourcesRepeatableWork units use local proceduresthat have proven effectiveResponsibleWork units are capable of meetingtheir commitments Capability Measurement, 10-200613
Work UnitRequirementsManagementManagersOrganizational Process LeadershipOrganizational Business GovernanceLevel 2 Process Areas Capability Measurement, 10-2006Work UnitChangeManagementSourcingManagementWork UnitPlanning andCommitmentExecutivesWork UnitPerformanceStaffWork unitmembersWork UnitMonitoringand ControlProcess andProduct Assurance14
Level 3 – Standardized OrganizationsOrganizationalIntegrate end-to-end businessprocesses across siloed functionsIntegratedEstablish standard processesfrom best practices in work unitsAdaptableStandard processes tailored forbest use in different circumstancesLeveragedCommon measures and processespromote organizational learningProfessionalOrganizational culture emergesfrom common practices Capability Measurement, 10-200615
Levels 2 to 3 TransitionEnterprise-wide end-to-end, integrated business processWorkUnit 1Level 3Confederatedwork unitsProceduresWorkUnit 2WorkUnit 3StandardProcessTailoredProcessThis is a process descriptionderived from the local method ofdoing itThis is a process descriptionderived from the local method ofdoing itProceduresProceduresProcedures1. Do this firstProceduresWorkUnit 1WorkUnit 3WorkUnit rkUnitUnit 5Unit 5a Do this Do this Do that Do that1.2.DoDothisthisfirstnext1. 2.Dothisfirstnext3.DoDothisthislast2. 3.DoDothisnextthislast3. Do this lastWorkWorkWorkUnit22UnitUnit2aWorkUnit 4Level 2 Capability Measurement, 10-200616
Level 3 Process AreasStaffWork unit membersOrganizationalProcessManagementProduct andServicePreparationProduct andServiceDeploymentProduct andServiceOperationProduct gementProduct andServiceManagementManagers Capability Measurement, 10-200617
Domain Specific Process AreasProduct icationMarketCommunicationSalesSupportProduct andServiceDeploymentMarketingManagementProduct andServiceOperationProduct andServiceSupportProduct andServiceManagementCollection FinancialModeling &ProjectionFinanceManagement Capability Measurement, 10-200618
Level 4 – Predictable OrganizationsQuantitativeProcess variation, performance, andcapability understood quantitativelyStableVariation reduced through reuse,mentoring, & statistical mgt.EmpoweredProcess data empowers staff tomanage their own workMulti-functional Functional processes reengineeredas roles in business processesPredictable Capability Measurement, 10-2006Outcomes predictable from subprocess capability & performance19
Level 4 Process zationalCommon ork unitmembers Capability Measurement, sinessManagement20
Level 5 – Optimizing OrganizationsProactiveImprovements planned to achievebusiness strategies & objectivesSystematicImprovements evaluated anddeployed using orderly methodsContinualIndividuals and workgroupscontinuously improve capabilityAlignedPerformance aligned acrossthe organizationPreventativeDefects and problem causessystematically eliminated Capability Measurement, 10-200621
Level 5 Process affWork unitmembersDefect andProblemPreventionOrganizationalProcess ymentContinuousCapabilityImprovement Capability Measurement, 10-2006OrganizationalPerformanceAlignment22
BPMM PilotsInternational BankObjectives:Health Care ServicesObjectives: Achieve cost reductions Reduce billing errors External recognition forefficiency and low risk Provide framework for 6σ andbusiness process reengineeringSemiconductor EquipmentObjectives: Integrate improvement activities Extend process maturity benefitsto every business process Capability Measurement, 10-2006GamingObjectives: Integrate development,installation, & support processes Improve efficiency of operations23
Transforming the CultureLevelLevel 55OrganizationOrganization developsdevelopsstandardstandard processes,processes,EngineeringEngineering vements,AgileAgile culturecultureDisciplineOrganizationLevelLevel 33Work unitIndividualLevelLevel 22LevelLevel 44ProjectProject mgrs.mgrs. establishestablishdisciplinediscipline && stability,stability,CommitmentCommitment culturecultureEnd-to-endEnd-to-end processprocessmanagedmanaged statistically,statistically,PrecisionPrecision culturecultureTrustLevelLevel 11LevelLevel 55AdAd HocHoc processes,processes,inconsistentinconsistent results,results,Hero-drivenHero-driven ts,Improvements,EmpoweredEmpowered cultureculture Capability Measurement, 10-200624
Summary1. The immaturity of business processes strictlylimits the value and success of IT systems2. The process maturity framework is a provenroadmap for improving process capability andunlocking the full value of IT systems3. The Business Process Maturity Model enablesgreater fidelity between the actualperformance of business processes and theirmodel-based representations Capability Measurement, 10-200625
Agenda 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:johnwalden@capabilitymeasurement.comOr IM’s:Yahoo: johnwalden1019AIM:aldensails Capability Measurement, 10-200626
Maturity Model TypologyMaturity Model Typology Organizational Capability Process maturity Descriptive states Prescriptive practices Locus of Transformation Level of Implementation Detail ITIL Org. Growth Crosby Quality Maturity Grid CMMI Continuous COBIT Maturity Ratings ITIL Maturity Ratings CMMI Staged People CMM Business Process MM SOA MMs
