1. Architecture World 10
Enterprise BPM
Improve efficiency and customer service, increase revenue and reduce costs
Conference Keynote
Outside-In – The Key To Success In
The 21st Century: the what
Steve Towers
BP Group
2. Architecture World 10
Enterprise BPM
Improve efficiency and customer service, increase revenue and reduce costs
Track Session
Outside-In – The Key To Success In
The 21st Century: the how
Steve Towers
BP Group
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www.successfuloutcomes.blogspot.com
6. Architecture World 10
Enterprise BPM
Improve efficiency and customer service, increase revenue and reduce costs
Conference Keynote
Outside-In – The Key To Success In The 21st Century: the what
How to uncover significant opportunities for improving processes permanently:
• Four key ‘hands-on’ techniques that can be used and deployed immediately
• How shifting the focus to ‘outside-in’ can transform complex processes
• The means to redefine ANY process through the use of a proven, pragmatic method
• How processes can be harnessed for strategic long-term advantage
• How Performance Management can be linked to process to achieve successful outcomes
• The importance of the Business Process Professional in guiding your business to success
7.
8. EBPM & EA Are Peas in the Same Pod. Growing each other to achieve Outside-In.
Strategic
Transformation
ENTERPRISE ENTERPRISE
Customer
Process BPM
Process Orientation ARCHITECTURE
Architecture
Maturity Standards Process Infrastructure
Metrics Metrics
Services
Process Process ENTERPRISE Systems
Models Ownership BUSINESS Software Integration
Process ARCHITECTURE Standards
Process Repository
Analytics Complexity
Tools & Techniques Management
Management
BPM
Rewards & Information
Technology Service
Remuneration Standards
Definitions
Organisation
Structure Enterprise Architecture
Strategy Principles
9. We have inherited an industrial legacy in thought and
action – what shape are you in?
CPP 12 India July 2010
10. Our organisations all look the same...
CEO
Marketing Sales Customer Operations Finance
Service
CPP 12 India July 2010
11. Processes wend and meander their way around these
rigid structures...
CEO
Marketing Sales Customer Operations Finance
Service
CPP 12 India July 2010
12. And hey ho – we nearly forgot the customer!
Now where do they go?
CEO
Marketing Sales Customer Operations Finance
Service
CPP 12 India July 2010
13. And things have become very complicated
The typical car contains about 2,000
components, 30,000 parts and 10 million
lines of software code. (John Paul McDuffie, HBR June 2010)
CPP 12 India July 2010
14. MORE COMPLEX THAN A FIGHTER JET
Safety regulations and consumer demand for performance and convenience
Have led to an exponential spike in cars’ software complexity.
100M AVERAGE
LUXURY AUTO
20M NAVIGATION SYSTEM IN 2009 S-MERCEDES-BENZ
10M AVERAGE 2010 FORD AUTO LINES OF SOFTWARE
10M
CODE IN FORD VEHICLES
6.5M BOEING 787 DREAMLINER (MILLIONS)
6M
5.7M U.S. AIR FORCE F-35 JOINT STRIKE FIGHTER 2.4M
1.7M U.S. AIR FORCE F-22 RAPTOR JET
2005 2009 2010
SOURCES IEEE: AUTOMOTIVE DESIGNLINE
CPP 12 India July 2010
16. The red tape is
strangling
us….
It is not a pretty
picture
Clerical Officer
Child Support Agency
17. “Only 24% of a Probation Officers time is spent in face to face contact
with their subjects. The rest goes on form filling and reporting”
Harry Fletcher, National Association of Probation Officers
18. A third could be shaved
off the annual £4.5bn
cost of quangos and NHS
management in England.
Health secretary
Andrew Lansley
“More than 70% of
nurses time is spent
away from the patient”
19. Police bureaucracy is indeed
grotesque - at any one time, out of a
command unit of about 350 officers,
just 10 will be out policing, the rest
behind desks recording data and
form-filling - a colossal waste of
resources that urgently needs
pruning.
But it is a symptom, not a cause, and
palliatives such as 'civilianisation'
(recruiting civilian pen-pushers to
take the place of officers behind
desks)
or less intensive incident recording
are making the situation even worse.
Sir David Normington
UK Top Civil Servant
26. Why should we bother?
Because the answers
are very different !
Inspiration:
Udayan Banerjee
CTO,
CPP 12 India July 2010
NIIT Technology (India)
27. And…
“We can‟t solve
problems using the
same kind of
thinking we used
when we created
them”
28. This is a Copernican Moment
Copernicus - 19 February 1473 – 24 May 1543
He died 467 years ago
29. A new perspective.. It‟s a seismic shift in focus
The
Customer Experience
Enquire about a Navigate to the Experiencing Baggage Enjoying the trip Relaxing in the Returning Home Enjoying a
trip airport hospitality transportation hotel Coffee at Home
is the Process
30. Enterprise Business Process Management
A method of managing
an organisation by
understanding and delivering
Successful Customer Outcomes.
It is also referred to as „Outside-In‟
CPP 12 India July 2010
31. Four proven ways to move Outside-In
1. Examine where your process
starts and finishes
2. Understand and Apply Process
Diagnostics
3. Articulate Successful Customer Outcomes
4. Determine What Business You are in
CPP 12 India July 2010
32. Four proven ways to move Outside-In
1. Examine where your process
starts and finishes
2. Understand and Apply Process
Diagnostics
3. Articulate Successful Customer Outcomes
4. Determine What Business You are in
CPP 12 India July 2010
33. Understand & PROCESS PROCESS PROCESS
Create DIAGNOSTICS DIAGNOSTICS DIAGNOSTICS Develop
Develop Process Perform Manage
Successful
Activity Identify Identify Risk Action Delivery
Customer Moments of Identify Business Assessment Plan
Outcomes List
Truth Breakpoints Rules
CPP 12 India July 2010
34. Where does your
process start and
finish?
CPP 12 India July 2010
35. Where does the process start and finish?
Enquire about a Navigate to the Experiencing Baggage Enjoying the trip Relaxing in the Returning Home Enjoying a
trip airport hospitality transportation hotel Coffee at Home
Shifting our focus to the Customer Experience and improving that
Through Moments of Truth, Breakpoints & Rules lets us
FIX the Causes of Work and REMOVE the Points of Failure
36. Outside In– Successful Customer Outcomes
Focus on Doing the Right Thing and Doing Things Right
37. Looking at the Process Outside-In
Achieves dramatic internal benefits
(typical 40-70%
cost savings)
and extends
our value chain
Navigate to the Experiencing Baggage Enjoying a Coffee
Enquire about a trip airport hospitality transportation Flying the airplane Enjoying the trip Relaxing in the hotel at Home
CPP 12 India July 2010
38. Check Out & ……..
Gee..
Wouldn‟t it
be great If
as I checkout
of the hotel…
Enquire about a Navigate to the Experiencing Baggage Flying the Relaxing in the Enjoying a Coffee
trip airport hospitality transportation airplane Enjoying the trip hotel Returning Home at Home
CPP 12 India July 2010
39. Why should we bother?
Outside-In is winning in terms of Revenue,
Profitability & Customer Service
$6.4 Bn First Quarter LOSS
$537 M First Quarter LOSS
$34 M First Quarter PROFIT Apr. 23--United Airlines said Tuesday that it would eliminate 1,100 jobs
…..it would reduce capacity by shedding 30 airplanes, UAL shares
Apr. 18--Southwest Airlines Co. said Thursday plummeted 37 percent to $13.55
it earned $34 million in the first quarter
Southwest now plans to take delivery of 14 $80 M First Quarter LOSS
Houston-based Continental Airlines Inc.
new Boeing 737-700 aircraft next year
reported Apr 17 that it lost $80 million
58 Successive Quarters $4.1 Bn First Quarter LOSS
of PROFIT
CPP 12 India July 2010
40. Four proven ways to move Outside-In
1. Examine where your process
starts and finishes
2. Understand and Apply Process
Diagnostics
3. Articulate Successful Customer Outcomes
4. Determine What Business You are in
CPP 12 India July 2010
42. Element Always Discretionary Levels
Process Activity Map (PAM) Y 1-2-3-4
Process Diagnostics Y 1-2-3-4
Twenty OI Quantifiable Elements (Levels 1-5)
Risk Assessment Y 1-2-3-4
Action Plan Y 1-2-3-4
Actions Taken Y 1-2-3-4
POF Dependencies Y 1-2-3-4
Points of Failure profile Y 1-2-3-4
Future State PAM Y 1-2-3-4
Risk Impact Assessment Y 1-2-3-4
Validated Process Activity Map Y 2-3-4
SCO Mind Map Y 2-3-4
Validated Process Diagnostics Y 2-3-4
Innovation Landscape Y 3-4
SCO Statement Metrics Y 3-4
Process Performance Landscape Y 3-4
Performance Management Scorecard Y 4-5
OI Strategy Map Y 4-5
IT Opportunities matrix Y 4-5
Individual Scorecard Y 4-5
SCO Capabilities Overview Y 4-5
CPP 12 India July 2010
46. MOT
MOT MOT MOT MOT
MOT MOT MOT
Any interaction with the CUSTOMER
is a
MOMENT OF TRUTH
47. MOT
MOT MOT MOT MOT
MOT MOT MOT
And every
MOMENT OF TRUTH
Ripples and reverberates through the organisation
48. MOT
MOT MOT MOT MOT
MOT MOT MOT
And
MOMENTS OF TRUTH
Create complexity, cost, wastefulness and failure
49. MOT
THE CAUSE OF WORK
MOT
MOT MOT
MOT
MOT MOT
MOT
THE EFFECT
50. It‟s all about Customer Experience and the
Moment of Truth. Remove or Improve!
Steve Jobs
51. Four proven ways to move Outside-In
1. Examine where your process
starts and finishes
2. Understand and Apply Process
Diagnostics
3. Articulate Successful Customer Outcomes
4. Determine What Business You are in
CPP 12 India July 2010
54. Stages in the approach
Understand & PROCESS PROCESS PROCESS
Create DIAGNOSTICS DIAGNOSTICS DIAGNOSTICS Develop
Develop Process Perform Manage
Successful
Activity Identify Identify Risk Action Delivery
Customer Moments of Identify Business Assessment Plan
Outcomes List
Truth Breakpoints Rules
CPP 12 India July 2010
55. Understand & Develop Successful Customer Outcomes
CRAFTING THE
SUCCESSFUL CUSTOMER OUTCOME
Understanding the real Customer Need TOOLS
Layer 1: Layer 4:
Who is the How does what
Customer? We do impact
Customer
Success?
Layer 2:
What is the
Customers current
Expectation? Layer 5:
The Successful
Customer
Outcome – what does
Layer 3: What is the process The One liner SCO: the customer really
the customer thinks they are One line statement need from us?
involved with? that explains the
actual SCO
The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
56.
57. Who said this? (Inspired SCO thinking)
“You can't always get
what you want
But if you try
sometimes you might
find
You get what you
need”
CPP 12 India July 2010
58. Applying for a University Grant
CRAFTING THE
SUCCESSFUL CUSTOMER OUTCOME
Understanding the real Customer Need TOOLS
Layer 1: Layer 4:
Who is the How does what
Customer? We do impact
Customer
Success?
Layer 2:
What is the
Customers current
Expectation? Layer 5:
The Successful
Customer
Outcome – what does
Layer 3: What is the process The One liner SCO: the customer really
the customer thinks they are One line statement need from us?
involved with? that explains the
actual SCO
The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
59. The Successful Customer Outcome
EDUCATION LOAN APPLICATION
Who is My Customer?
Student
Who is my How does what we do
We must be careful here. What we are Customer? impact Customer
trying to do is identify the category Success?
of people who are likely to be our
customer, and who we want to be
What is the
our customer.
Customers current SCO The SCO - what
expectation?
does the
This could be “people wishing to take customer
classes” or “people desiring an REALLY want
What is the process the from us?
education” but… customer thinks they are
involved with?
“students” is a very good answer because
it defines that group of people who
are most likely to be consumers of
the “financial aid process.”
CPP 12 India July 2010
60. The Successful Customer Outcome
Student
Who is my How does what we do
Customer? impact Customer
I must go through the Success?
financial aid process to
get Aid What is the
Customers current SCO The SCO - what
expectation?
does the
There will be problems, customer
REALLY want
but I should eventually What is the process the from us?
get my financial aid customer thinks they are
involved with?
CPP 12 India July 2010
61. The Successful Customer Outcome EDUCATION LOAN APPLICATION
What is the process the Customer thinks
they are involved with?
Student
Getting an education
Who is my
Customer? Building a successful career
I must go through the financial
aid process to get Aid Earning a degree
What is the
Customers current SCO
expectation? This is a major step beyond traditional process
management techniques.
There will be problems, but I
should eventually get my What is the process the
financial aid customer thinks they are This part of SCO Mind Mapping
involved with?
moves us towards the “outside-in”
perspective where we can uncover
Getting an education Earning a degree how the process really effects the
customer.
Building a Successful
career
CPP 12 India July 2010
62. The Successful Customer Outcome Determine when a student
can register
Determine if a student can graduate
Student Determine if a student can
afford the class
Who is my How does what we do
Customer? impact Customer
I must go through the financial Success?
aid process to get Aid
What is the
Customers current SCO
expectation?
There will be problems, but I
should eventually get my What is the process the
financial aid customer thinks they are
involved with?
Getting an education Earning a degree
Building a Successful career
CPP 12 India July 2010
63. The Successful Customer Outcome Determine when a student can
THESE THINGS ARE MEASUREABLE
register
THESE THINGSa student can graduate
Determine if ARE PERSONAL
THESE THINGS ARE OUTSIDE-IN
Student Determine if a student can afford
the class
Who is my How does what we
Customer? do impact Customer
I must go through the Success?
financial aid process to I need to receive my financial
What is the assistance
get Aid
Customers current
SCO
The SCO - I need to receive aid before the
expectation? what does semester starts
There will be problems, the customer
but I should eventually What is the process the REALLY need I need to attend the classes I have
customer thinks they are from us? chosen
get my financial aid
involved with?
I do not want to call to chase progress
Getting an education Earning a degree I need to receive the correct amount
Building a Successful
I do not want to have to fix your
career mistakes
CPP 12 India July 2010
64. Understand & Develop Successful Customer Outcomes
CRAFTING THE
SUCCESSFUL CUSTOMER OUTCOME
Understanding the real Customer Need TOOLS
Layer 1: Layer 4:
Who is the How does what
Customer? We do impact
Customer
Success?
Layer 2:
What is the
Customers current
Expectation? Layer 5:
The Successful
Customer
Outcome – what does
Layer 3: What is the process The One liner SCO: the customer really
the customer thinks they are One line statement need from us?
involved with? that explains the
actual SCO
The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
65. Define the Successful Customer Outcome Map
CRAFTING THE
SUCCESSFUL CUSTOMER OUTCOME
Understanding the real Customer Need TOOLS
Layer 1: Layer 4:
Who is the How does what
Customer? We do impact
Customer
Success?
Layer 2:
What is the
Customers current
Expectation? Layer 5:
The Successful
Customer
Outcome – what does
Layer 3: What is the process The One line SCO: the customer really
the customer thinks they are One line statement need from us?
involved with? that explains the
actual SCO
The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
67. Four proven ways to move Outside-In
1. Examine where your process
starts and finishes
2. Understand and Apply Process
Diagnostics
3. Articulate Successful Customer Outcomes
4. Determine What Business You are in
CPP 12 India July 2010
69. What business are you in?
Inside-Out
Hallmark Cards Perspective Shift… what
Gilead Sciences did the founders want
from their business?
BMW
Southwest Airlines Outside-In… a new focus,
Your company a complete vision
CPP 12 India July 2010
70. Process Performance
Customer
Landscape
SUCCESSFUL CUSTOMER OUTCOMES
SCO
CUSTOMER OUTCOMES
CO CO
OUTCOMES
Oc Oc Oc
OUTPUTS
ACTIVITIES
TASKS
CPP 12 India July 2010
71. In Outside-In
all work is
aligned to
achieving
Successful
Customer
Outcomes
CPP 12 India July 2010
76. adeus Tack Takk Vielen Dank
afscheid Bedankt Obrigado
再見 작별 인사 Grazie
tạm biệt नमस्ते Thank You
Totsiens Terima Kasih Tak
Bedankt Gracias Kiitos
αντίο
Auf Wiedersehen
CPP 12 India July 2010
до свидания
77. Architecture World 10
Enterprise BPM10
Improve efficiency and customer service, increase revenue and reduce costs
Conference Keynote
Outside-In – The Key To Success In
The 21st Century: the what
Steve Towers
BP Group