Managing Business Processes & Change

Driving successful business transformation and improvement initiatives

Practitioner case study: Excellence in BPM

26th Oct 2011

Susanne Rauer Ricardo Correia

CBA BPM PoC 2 - Process Excellence
1/11/2011 10:53 AM

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Key Objectives
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CBA set out to develop an understanding of the people, processes and technology needed to deliver business value through BPM. Alignment to strategic objectives and initiatives. New organisational capabilities are required to be successful. A process-centric approach to solution delivery will provide a foundation for a customer-to-customer (C2C) view with realtime visibility of process performance. Co-existence with technology assets demonstrated.
A challenging journey that requires strong sponsorship throughout throughout

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Key Benefits
Benefits
Improved business process efficiency

Features
Visibility of process performance in real-time Guided insight into process improvement opportunities Simulation and comparison of process change using execution data Process participants are guided through managed customer-to-customer processes Real-time visibility of impending service level breaches Right the first time through reduced rework Ability to measure process performance relative to customer expectations Actively managed, standardised processes Processes, activities and metrics are defined in a single repository Reuse of processes Closer collaboration between business, PE and IT

Improved business process effectiveness

Improved customer experience Ability to effect business change more efficiently

Key Success Factors

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Business
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Increase business agility and product and service time-to-market Increase business insights to reduce costs and increase revenue Increase Customer Satisfaction and quality of service

People & Organization

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Identify the new roles, responsibilities & structure Identify Organisational Change Management (OCM) impacts Identify training and development needs Define operating model impacts

Process (Methodology)
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Identify the methods for implementing & improving managed processes Define the types of models and how they will be used (model for execution) Develop a view of re-use across the CBA Group

People & Process First

Typical Roles in the BPM Lifecycle

Business Executives Process Excellence Practitioner Process Owner

Domain Architect

Process Excellence Executive Information Architect

Org Change Mgt SME

Business SME Process Excellence Practitioner BPM Analyst

Business

Planning & Implementation Repositories

Architects

Business SME Architects Developer

Org Change Testing Mgt SME SME

BPM Developer Business SME

Walk the Talk

In our PoC, we started with the Overdrafts process, that has very limited automation and control ...

Provide paper application to customer to complete Advise of privacy act and permission for credit check Carry out pricing discretion Send paper application to PLDC via fax

Verify if application within authorised persons delegated authority Conduct serviceability assessment Approve go to create contract Decline draft decline letter and send to branch to issue to customer

Draft a loan schedule and send to branch Verify supporting documents from customer Provide loan documents to customer to sign

Apply limit Obtain dual authorization Set correspondence recipient Provide customer with documents Mail documents for imagining Record interaction

Manual metrics and monitoring

Activities implemented manually Activities implemented in CommSee

...and proceeded to model, implement and control the tasks within our branch applications and BPM

Input Application Advise of privacy act and permission for credit check Send Application to PLDC Capture payslip information Carry out pricing discretion

Verify if application within authorised persons delegated authority Conduct serviceability assessment Approve go to create contract Decline draft decline letter and send to branch to issue to customer

Draft a loan schedule and send to branch Verify supporting documents from customer Provide loan documents to customer to sign

Apply limit Obtain dual authorization Set correspondence recipient Provide customer with documents Mail documents for imagining Record interaction

Automated metrics and monitoring

Activities implemented manually Activities automated in CommSee Activities automated in TeamWorks Out of scope for PoC

Demo

Lombardi

CommSee
Personal Overdraft Process

Business Impact
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The platform has gone live and we are currently working on delivering specific metrics for the first process implemented. The introduction of BPM has allowed us to take a process which was previously predominantly manual (and took weeks to process) to a fully automated and managed process which now takes days even hours to complete. Visibility of the process is now possible due to the BPM BAM capability allowing the business to get clear metrics on how many processes started per day, how many went to completion, how many have stopped in the queue and why and what the course of action is to successfully complete. As a result of the first successful project in production our early adopter pipeline is looking healthy.

Key Lessons Learned

Clear sponsorship People & process first Business engagement all the way Clear roles & responsibilities in workshops Mini playbacks between main playback Be cognisant of precious stakeholder time Go slow, start small get it right

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Planning Considerations
Input
Financial

Considerations
Maximise ROI in first 12 months whilst ensuring longer term objectives are not compromised. Objectives: digitisation, workflow and work item management. Multi-Entity Banking. Accommodating process variance has a direct effect on implementation and ongoing costs. Building organisational capability and managing change requires a concerted effort over time. May not always be able to deliver C2C solutions in a single release.

Strategic Initiatives

Standardisation

Capability Development

Release Cycle

Enterprise Platform

Need to ensure that suitable infrastructure and environments are delivered in required timeframe.

Guiding Principles for Implementation Planning

1. 2. 3. 4. 5. 6. 7. 8. 9. Focus on business areas that currently have little automation Remove paper and providing basic workflow initially Stick to relatively simple processes, dont try to implement all process exceptions. Availability of process owner and business SMEs is critical. Restrict integration with existing systems to frequent activities. Use process analytics to direct investment. Dont accommodate variance that isnt mandatory. Create solutions for multi-entity where a case exists. Standardise processes and identify re-use opportunities

10. C2C coverage desirable, but not always possible in a single release.