EBPM – Modern Enterprise-wide Systems Approach to BPM

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach – Inspiration and Innovation Unlimited!

 

"Process is a revolution in thought that leads to changes in business."  

– Pierre Leroy

 

 

8 Best Practices of Successful Companies

  • Manage processes, not people. Focus not on what they do, but on how they do it.... More

Smart Business Architect

8 Essential Principles of EBPM

By Andrew Spanyi1

  1. Look at your business from the outside-in, from the customer's perspective, as well as from the inside-out... More

Cross-functional Teams Traditional Management Model Enterprise-wide Business Process Management (EBPM) BUSINESS PROCESS MANAGEMENT: Enterprise-wide Cross-Functional Approach (EBPM)

The Tao of EBPM

  1. YIN (passive, accepting side).  Looking at your business outside-in and making it easy for your customers to do business with you.

  2. YANG (active, aggressive side). Looking at your business inside-out and taking action to achieve your strategic focus.

The Tao of Business Success

Business Process Thinking Check List

13 Questions

Assess Your Organization's Progress Toward Excelling in Business Process Management4

5

The entire set of enterprise business processes are being managed for improved performance.

4

The full set of customer-touching processes is being managed for continuous improvement.

3

Significant success with process redesign projects realized, and a few end-to-end business processes managed for continuous improvement.

2

Some prior success with process redesign projects, but not much sustainable process management.

1

Broad awareness of the need to improve and manage business processes exists, but little action so far.

0

Not much awareness of the need to improve and manage business processes exists.

Management Function vs Process Focus

  • Don't assume employees are the problem; do accept process is the problem... More

Main Subjects for Suggestions in Japanese Companies

  • Improvements in machines and processes... More

Toyota Production System

Kaizen Mindset

  • Emphasis on process – establish a way of thinking oriented at improving processes, and a management system that supports and acknowledges people's process-oriented efforts for improvement... More

Implementing Kaizen: 7 Conditions

Effective Innovation Process

7 Lessons from Silicon Valley Firms

  1. Make cross-functional involvement the path of least resistance...  More

The Jazz of Innovation

 

 

Systemic Innovation

7 Interwoven Areas

  1. Process Innovation... More

Organizing for Innovation

Three Aspects

  1. Corporate Culture

  2. Business Processes

  3. Organizational Structure... More

4 Phases of IT/Business Alignment

  1. Plan: Translating business objectives into measurable IT services. The plan phase helps close the gap between what business managers need and expect and what IT delivers... More

Enterprise Business Process (EBP)

Enterprise business process (EBP) is "the end-to-end (cross-departmental, and often, cross-company) coordination of work activities that create and deliver ultimate value to customers."2

"Running a business without an enterprise business process plan is analogous to preparing for a big game with only a roster of key players, no play-book and no practice."1

Enterprise-wide Business Process Management (EBPM)

EBPM, representing the third-wave of Business Process Management, is "a deliberate and collaborative approach to systematically – and systemically – managing all of a company's business processes."1

EBPM addresses the pressing need of the new knowledge-drive economy to integrate business process thinking with strategy, organizational structure and people issues. It requires that your executive team lead and manage differently and think more systemically about your business.

Benefits of EBPM

"Because multiple value chain participants must collaborate to deliver value, they must all participate in process analysis and design - and achieve team learning. Only with the visibility provided by process management can end-to-end processes be understood, anomalies spotted, redundancy eradicated and inefficiencies eliminated.

Process management integrates everyone and everything once; thereafter, process design, transformation and experience take place freely and continuously, not as a series of infrequent, long-winded, piecemeal and distracting "integration projects" for each new process design. In this way, participants truly learn about the process and the side effects of change on the business," say Howard Smith and Peter Fingar.3

 Case in Point  Benefits of EBPM

Source: Agenda, Michael Hammer

 

The payoffs of process mastery can be breathtaking. Costs melt away, quality goes through the roof, and time spans shrink to a fraction of what they were. In 1999 Hammer and Company surveyed dozens of companies that had adopted the process approach to work and business.

  • In order fulfilment, cycle times had typically decreased by 60% to 90%

  • "Perfect orders" (those delivered on time, with no mistakes) had increased by 25%

  • The cost of performing procurement transactions had been slashed by more than 80%

  • Procurement times had shrunk 90%

  • In product development, the percentage of successful launches rose by 30% to 50%

  • The time required to bring a new product to market was shortened by 50% to 75%

These improvements in process performance paid off in the critical enterprise currencies of customer satisfaction, customer retention, and corporate profits.

The good news is that these remarkable improvements are not atypical. In fact, they are the norm. The bad news is that achieving them requires a wholehearted commitment to process and an abandonment of the thinking and practices inherent in functional organizations.

Cross-functional Management

Cross-functional management (CFM) manages business processes across the traditional boundaries of the functional areas. CFM relates to coordinating and synergizing the activities of different units for realizing the superordinate cross-functional goals and policy deployment. It is concerned with building a better system for achieving such cross-functional goals as innovation, quality, cost, and delivery... More

Competitive Strategies

Growing Demand for Systems Thinking

Today's end-to-end business processes are dynamic systems. The goal of systems thinking is to manage the rapidly growing complexity of the worlds of business and technology...  "End-to-end business processes are dynamic systems, but today's business professionals are generally not trained in general systems thinking. Too often constrained to a perspective limited by ingrained business practices, rigid scripts and structured input-output work, few professionals have a wide-angle view of, or experience dealing with, end-to-end business processes."2

6Ws of Corporate Growth

To achieve sustainable corporate growth, you and your people should live the principles of  6Ws of corporate growth. The "Six Ws" – what, why, who, when, where and how – are very powerful words. Use them constantly to seek, either from yourself or from others, the answers needed to manage effectively.

 

  1. Know HOW: know how compete, innovate, organize business processes, market, and sell... More

29 Obstacles To Innovation

  • Inelegant systems and processes

  • Internal process focus rather than external customer focus... More

The Jazz of Innovation: 11 Practice Tips

The New Era of Systemic Innovation

Innovation used to be a linear trajectory from new knowledge to new product. Now innovation is neither singular nor linear, but systemic. It arises from complex interactions between many individuals, organizations and their operating environment. Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as enterprise-wide business process management, manufacturing, distribution, human resources, marketing, and customer service... More

 Case in Point  Canon: Eliminating 9 Wastes

The objectives of Canon Production System (CPS) are to manufacture better quality products at lower cost and deliver them faster.

Canon invited all their employees to suggest ideas for improvement and developed 6 Guidelines for the Suggestion System to make it most effective. 

The company developed also a list of 9 wastes to help their employees become problem-conscious, move from operational improvement to systems improvement, and recognize the need for self-development... More

TPS-Lean Six Sigma

TPS-Lean Six Sigma is like a ‘turbo-charged’ Lean Six Sigma program.

TPS-Lean Six Sigma is a revolutionary, holistic concept. It actively has human capital embedded in Lean Six Sigma in a manner that not only stimulates commitment, integrity, work-life balance, passion, enjoyment at work and employee empowerment but also stimulates individual and team learning in order to develop a motivated workforce and sustainable performance improvement and quality enhancement for the organization... More

Lean Enterprise: 13 Tips

 

 Discover much more in the

FULL VERSION of e-Coach

Two Main Enablers of EBPM...

Business Project Management System (BPMS)...

Organizations as Complex Evolving Systems...

Process-managed Enterprise...

Business Process Thinking...

Systems Thinking...

Process Innovation...

Cross-functional Teams...

Evolution of the CIO...

 Case in Point  Intel Corp. ...

 Case in Point  GE Work-Out...

 Case in Point  Toyota Production System...

 Case in Point  Dell...

 

 

References:

  1. Business Process Management (BPM) is a Team Sport: Play it to Win!, Andrew Spanyi

  2. Agenda, Michael Hammer

  3. Business Process Management: The Third Wave, Howard Smith and Peter Fingar

  4. "Beyond Process Maturity to Process Competence", Andrew Spanyi

  5. Synergizing Business Processes, Vadim Kotelnikov

  6. Synergizing Value Chain,  Vadim Kotelnikov

  7. SMART Business Architect, Vadim Kotelnikov

  8. Systemic Innovation, Vadim Kotelnikov

  9. Direct from Dell, Michael Dell with Catherine Fredman

  10. More For Less, Andrew Spanyi

  11. Continuous Improvement Firm (CIF), Vadim Kotelnikov

 

Business Processes

Cross-functional Management (CFM)

Enterprise-wide Business Process Management (EBPM)

8 Essential Principles of EBPM

Business Process Thinking Check List: 13 Questions

4 Phases of IT/Business Alignment

10 Commandments of Improvement

Quality Management

Deming's 14 Point Plan for Total Quality Management (TQM)

Lean Production

7 Principles of Toyota Production System (TPS)

5 Elements of Enabling a Lean Approach

10 Commandments of Improvement

TPS-Lean Six Sigma – Linking Human Capital to Lean Six Sigma

Quick and Easy Kaizen

Kaizen Mindset

Japanese-style Suggestion System

9 Waste Categories and 6 Guidelines of the Canon's Suggestion System

Five Ss at Canon

Smart Corporate Leader

Smart Business Architect

6Ws of Corporate Growth

Systemic Innovation: 7 Areas

Using Best Practice: The Trotter Scorecard

Modern Manager

Management Function vs. Process Focus

Project Management

5 Factors that Make a Project Successful

GREAT Model