1. Connecting Process Professionals
1
Where BPM and Change
Management meet
Paul Walsh | Oakton
8th September 2012

2. Agency Reform Consultancy -
Where BPM met OCM
• BPM Link September 2012
www.oakton.com

3. Agenda
• Background
• Oakton’s Brief
• Discovery
• Findings
• Recommendations
www.oakton.com.au 3

4. Background
• Medium sized agency
– Almost 1300 staff
– Responsible for budget >$4b (2010/11)
• Subject to numerous reviews the latest in April 2011
• Independent Review had 39 recommendations
• 38 of these accepted in Government’s response in July 2011.
• This led to over 120 individual action items to be finalised by
30 June 2012!
www.oakton.com.au 4

5. www.oakton.com.au 5
My first meeting at the Agency

6. From Independent Review (2011)
Recommendation 31: Corporate reform
efforts within the Agency should be
accelerated to promote a culture geared
towards delivering results and enhancing
productivity, especially by reducing staff
turnover, streamlining business processes
and reducing paperwork.
www.oakton.com.au 6

7. Oakton’s Brief
The Terms of Reference (TOR) included:
• Recommendations to improve business process reform
within the Agency , including current policy, guidelines and
tools.
• Development of a business process framework covering the
whole of the Agency
• A stocktake of Supporting (Enabling) processes and
Management processes (with a “light touch” approach to
core processes).
• Identification of five quick wins for streamlining processes.
www.oakton.com.au 7

8. Business Process Management
Initiate Assess
Continuous
Improvement
Streamline
Planning
Stakeholder Engagement and Ownership
Process Modeling and Management
Organisational Change Impact
Learning and Development
Initial BPM analysis and
definition documentation
Current state assessment
documentation
Streamlined process
documented and
implemented
Process measurements
and controls
documentation
Control
Build BPMI leadership,
understanding and
commitment
Understand all
dimensions of the current
business processes
Improve efficiency,
effectiveness and
adaptability of the
business processes
Implement a framework to
measure and control the
streamlined processes for
ongoing improvement
Implement continuous
improvement processes
Continuous improvement
documentation
Effective,efficientand
adaptableprocesses
Oakton’s BPM Framework

9. Business Process Development &
Management Policy
Developed in 2006 following a review.
— A vision
• This policy provides the context and rationale for the Agency’s new approach to
the development and management of business processes and the creation of new
quality control points which include testing, approval, release and reporting. It
explains the key elements of the governance regime, and the reasons for the
various components.
— Defined a minimum mandatory business processes
• Common Business Processes
— Accessibility of business processes – Instructions, Policies,
Guidelines, Tools
— Policy, business processes and knowledge sharing
— Accountability for business processes
— Effective and transparent management of business processes
www.oakton.com.au 9

10. Multi-lateral
agreements
Channels
Non-Gov
Organisations
Grant
schemes
Scholarships
Projects and
tenders
Business Architecture
www.oakton.com.au 12
1
2
3
4
Strategic Drivers
Purpose
Strategic
Goals Portfolio
Strategies
Plan
Design Deliver
Monitor
Program
Lifecycle
Delivered
Services
Business Transformation and Adaptability
People Finance Information Assets
Infra-
structure Systems
Business
Planning
Resource
Planning
Functions
Investment
Framework
Processes Governance
Example of a high level business architecture
Policies
5
External Stakeholders and Value Chain
Posts Comms
Channels

11. Strategic themes – stakeholder feedback
Many of the strategic opportunities and issues raised by Senior Executive appeared to
be symptomatic of rapid growth.
www.oakton.com.au 13
Planning – There is room to
improve the planning
process that links strategic
goals with investment
decisions
Proportionality – Current
initiatives are aligning
investment processes with
program value and risk.
Enabling processes and systems – Are geared
around old delivery modalities. System ownership
is an issue. BPM is not strategically aligned.
Workforce skills – There is
a requirement for more
program management and
delivery skills.
Program alignment –
There is room to better align
program planning and
design with country
strategies.
Governance – There is merit in
developing and communicating
an overarching governance
framework.
Corporate knowledge and information –not
as agile as it could be – this is partly about
process, partly about corporate knowledge and
management of information.

12. Business process maturity – An snapshot
Strategic
Alignment
Governance Methods Information
Technology
Culture People
Process
Improvement
Plan
Process
management
decision making
Process design &
modelling
Process design &
modelling
Process skills &
expertise
Responsiveness to
process change
Strategy & Process
Capability Link
Process roles &
responsibility
Process
implementation &
execution
Process
implementation &
execution
Process
management
knowledge
Process values &
belief
Process
Architecture
Process metrics &
performance
Process control &
measurement
Process control &
measurement
Process education &
learning
Process attitudes &
behaviours
Process Output
Measurement
Process
management
standards
Process
improvement &
innovation
Process
improvement &
innovation
Process
collaboration &
communication
Leadership
attention to process
Process customers
& stakeholder
Process
management
controls
Process project &
program
management
Process project &
program
management
Process
management leader
Process
management social
networks
www.oakton.com.au 14
Adapted From Jeston & Nelis 2006 BPM: Practical Guidelines for Successful Implementations
In place
Partial or being developed
No evidence or only evident in one or two pockets

13. www.oakton.com.au 15
Process Stocktake
Level 1 process Confirm the description of the Level 1 process
Level 2 process Confirm what Level 2 processes are in scope of the Level 1 process
Process owner Who are the Level 1 and Level 2 owners?
Process health check What is the state of the current Level 2 processes? Effective, Could
be improved, major issues
System What key systems support the Level 2 processes? This includes IT,
excel spread sheets, access databases. If no system please state
manual process.
Process guidelines Do any process guidelines exist, are they being used and where are
they located?
Training What training, if any, is provided? How is this training delivered?
Why improve the process What are the main reasons why the process needs improving? E.g.
Deliver benefits/ mitigate risks/ optimise costs.
Current/planned improvements What are the current or planned process improvements? Triggered
by Effectiveness Review/ BP reform/ operational planning/ other.
Priority When are the desired improvements to be implemented? E.g.
Quick win, mid-term, long-term.
Performance Metrics Are there any metrics? Eg volumes, staff resources, error rates,
documented KPIs

14. The Findings
Recommendations to improve business process reform within
the Agency , including current policy, guidelines and tools.
• Development of a business process framework covering the
whole of the Agency
• A stocktake of Supporting (Enabling) processes and
Management processes (with a “light touch” approach to
core processes).
• Identification of five quick wins for streamlining processes.
www.oakton.com.au 16

15. Key Finding TOR #1
The current business process reform policy is a good document, but it was set
up before the Effectiveness Review, and now requires a new approach to
implementation to meet the Agency’s needs. This includes:
— A greater level of direction and control of business process reform.
— A more centralised approach to the planning, sequencing and delivery of
process improvements (i.e. the process lifecycle), supported by a
rebranded Rules & Tools.
— A collective approach to managing the impacts of the numerous changes
on the Agency’s operations.
— This approach is consistent with other organisations going through major
business change, and should see the Agency through this transformative
stage.
www.oakton.com.au 17

16. The Findings
Recommendations to improve business process reform within
the Agency , including current policy, guidelines and tools.
Development of a business process framework covering the
whole of the Agency
• A stocktake of Supporting (Enabling) processes and
Management processes (with a “light touch” approach to
core processes).
• Identification of five quick wins for streamlining processes.
www.oakton.com.au 18

17. www.oakton.com.au 19
2.0 Core Processes

18. Key Finding TOR #2
This framework can be refined over time and
provides a top-down view of processes across
the whole of the Agency. It supports the
Agency’s ability to identify the value of each
process, and any risks and gaps, with the view to
selecting key processes for detailed analysis and
redesign.
www.oakton.com.au 20

19. The Findings
Recommendations to improve business process reform within
the Agency , including current policy, guidelines and tools.
Development of a business process framework covering the
whole of the Agency
A stocktake of Supporting (Enabling) processes and
Management processes (with a “light touch” approach to core
processes).
• Identification of five quick wins for streamlining processes.
www.oakton.com.au 21

20. www.oakton.com.au 22
2.0 Core
processes

21. Supporting (Enabling) Processes – Level 1 Overall Rating
Manage finance 3
Manage human resources 2
Manage systems and technology 3/4
Manage legal services 3
Manage property 3
Manage security Not rated
Manage engagement with Minister & Parliament 3/4
Manage communications and media 3
www.oakton.com.au 23

22. Key Finding TOR #3
• Management processes – The Agency recently implemented several
management frameworks to support its business needs through to 2015-
16. There are still challenges, particularly for business planning and
information management. This is consistent with other Government
organisations.
• Core processes – There is an emerging view of the Agency’s top level
processes required through to 2015-16.
• Supporting (enabling) processes – Some processes are working well,
however there are key challenges in regard to quality, efficient use of
resources and better automation, particularly for some financial and
human resource processes. This is consistent with other Government
organisations.
www.oakton.com.au 24

23. The Findings
Recommendations to improve business process reform within
the Agency , including current policy, guidelines and tools.
Development of a business process framework covering the
whole of the Agency
A stocktake of Supporting (Enabling) processes and
Management processes (with a “light touch” approach to core
processes).
Identification of five quick wins for streamlining processes.
www.oakton.com.au 25

24. Quick wins
Stakeholder consultations and review of various documents has revealed some common quick
win themes:
• Travel (note: under development, updated Travel Policy)
• Acquittals;
• Movement requisitions;
• Contracts (note: under development)
• Improve administration of small value agreements
• Delegations
• Contracts
• Procurement
• Resource Allocations
• Procurement
• Automate
• Communicate process and the why
• Proportionality Project impact
• Grants
• Streamline process
• Resource allocations
• Faster, clearer delineation of approvals
• Salaries & conditions for O-based staff
• Strategic Planning
• Link between business unit planning and departmental budget
• Corporate Governance
• Unclear how the various committees interact and areas of responsibilities
www.oakton.com.au 26
Some points for consideration:
What are the “knock-on” effects of changing
processes?
Are these really quick wins?
Or are they the first steps of strategic
initiatives or systems investment?
What does quick win mean for the Agency?
• Time
• Cost
• Resource effort.

25. Key Finding TOR #4
Transformative change in the Agency has generated, and will continue to
generate, numerous business improvement initiatives.
• The 2011/12 program of improvements will strengthen processes. Early
results in key processes should be communicated to staff.
• The Agency has implemented several “quick wins” over the last six months
that will have a major, positive impact on staff.
However, the goal of business process improvement is not always about
efficiency or less paper work. In assessing improvement opportunities in the
future, the Agency should consider its objectives i.e. will process
improvement lead to:
• More effective programs
• Better quality and timeliness of decisions and deliverables
• Mitigation of risks around key investments
www.oakton.com.au 27

26. Recommendations
 Approach to Business Process Reform
 The Agency should refine its BPD&M Policy and implementation approaches
to meet business needs through to 2015-16.
 Rules & Tools
 The Agency should align Rules & Tools to the updated BPD&M Policy
 Change Management
 The Agency should develop a Change Charter and Schedule that establishes an
enterprise-view of changes, including timing and sequencing.
 Business Process Framework
 The Agency should further develop and then apply and maintain the business
process framework as part of its broader approach to business process reform.
www.oakton.com.au 28

27. Recommendations (cont’d)
 Early Results from Improvements Implemented in
2011/12
 The Agency should focus attention on achieving and communicating early
results on recent improvement initiatives relating to travel processes,
procurement (small value contracts) and workforce planning.
www.oakton.com.au 29

28. Recommendations (cont’d)
 Early Priorities (< 6 months)
— The Agency should implement the following early priorities:
• Scope and plan process improvements and workflow automations across core
HR processes. (This would lead to a mid-long term HR improvement project.)
• Communicate and apply the results of the training needs analysis to establish
the baseline for further workforce development and recruitment activities.
• Develop a draft Change Charter and Schedule that provides a view of the
impacts of key policy and process changes on operations.
• Reduce the duplication and customisation of Senior Executive Briefings
through more consistent use of new standard guidelines and templates.
• Deliver staff training and better guidelines for internal budgeting and general
accounting reporting processes.
www.oakton.com.au 30

29. Recommendations (cont’d)
 Other Improvements (6-24 months)
• The Agency should address the issues raised in Supporting (Enabling)
processes and Management processes (Rating 1 or 2) over the next 6-
24 months.
• The Business Improvement Office (outlined in Recommendation 1)
should work closely with process owners and the Program
Management Office to scope and plan key processes for automation
as part of the upgrade of key systems and financial/human resource
systems.
www.oakton.com.au 31

30. www.oakton.com.au 32

31. BPM meets Change Management
—BPM is often used to assist in business
transformation
—Change Management should be used to assist
in business transformation
—In business transformation you need to do
both!
www.oakton.com.au 33

32. www.oakton.com.au 34

33. Consulting Technology
Thank you and Q&A
Strategic partners
Microsoft
Oracle
SAP
IBM
Melbourne
Sydney
Canberra
Brisbane
Hyderabad
23 years
9 key industry sectors
800 plus clients
10,000 plus projects
Whatproblemdoyouwantdefined?
Thank you and Q&A
Strategic partners
Microsoft
Oracle
SAP
IBM
Melbourne
Sydney
Canberra
Brisbane
Hyderabad
23 years
9 key industry sectors
800 plus clients
10,000 plus projects
Whatproblemdoyouwantdefined?
www.oakton.com.au