BPTF Architecture Overview - Value Chain Group

Copyright©2010ValueChainGroupallrightsreserved|PartIIIPracticalBPTFApplication18Thethreedimensions(ValueChainSegmentation,BuildingBlocksandContinuousImprovementPrograms)addresscompletenessofbusinessprocessrepresentationsrequiredduringthetransformation,whilethefiveviewsgiveustheabilitytocommunicateallkeytransformationconcerns.InthenextarticlewewillprovideapracticalapplicationofhowtheBPTFcanbeusedtoimprovecompanyresultsandprovideagreaterROIoninvestmentinsystemscapabilities.PartIIIPracticalBPTFApplicationInthefirsttwopartsofthisseries,weintroducedtheBusinessProcessTransformationFramework.Inthefirst,wedescribedwhatitis,itselementsincludingValueChainSegmentation,BuildingBlocksandContinuousImprovementPrograms.Inthesecond,wedescribedtheBPTFArchitecturalFrameworkwithitsOrganizational,Process,Application,DataandInfrastructureViews.Sofar,sogood,butsowhat?HowdoesBPTFprovideacompanytheabilitytoincorporatebestpracticesintoitsbusinessprocessesandtheagilityneededtorespondquicklytochangesinthemarketplaceandcompetitivelandscape?That’sthefocusofthisthirdandfinalarticleinthisseries.Let’sconsiderthehypotheticalcaseofAmalgamatedConsumerCorporation(ACC).ACCexecutivesarefacingdualchallenges:improvingcustomerserviceandreducingcostsandpricestocompetewithnew,offshorecompetition.InordertorespondtothesechallengesACCexecutivesdevelopedastrategytoincreasevaluetocustomersinspecificcustomersegments.ACCexecutivesarealsoconcernedthathistoricallytheyhavenotexecutedtheirstrategieseffectively.TobetterunderstandthegapsbetweencurrentperformanceandtheirnewlydefinedStrategicObjectives,ACClaunchedaprocessimprovementinitiativeutilizingtheBPTFmethodology.TheycreatedabusinessarchitecturetaskforceandestablishedaBusinessProcessManagement(BPM)ProgramOffice.Thecompany’sChiefProcessOfficerwasassignedtoleadtheinitiativewhileACC’sExecutiveVicePresidentbecametheinitiative’sExecutiveSponsor.TheProgramManager’sprimaryobjectivewastodelivertheStrategicObjectivesthroughbetterintegrationofimprovedbusinessprocessesutilizingACC’ssignificantinvestmentininformationtechnology.AninitialinvestigationuncoveredalackofkeyprocessstandardizationacrossACC’s20operatingdivisions.ThislackofstandardizationwasidentifiedastherootcauseofACC’sinabilitytorespondquicklytoshiftsincorporatestrategyandunderutilizationofITAssets.Additionally,theydiscoveredthatfunctionalunitswerebeingrewardedforfunctionalresultsoptimization,oftenattheexpenseofotherfunctionsandsuboptimizationofcompanyresults.LackofbusinessprocessunderstandingandprocessdesignconsensusacrossfunctionalorganizationsandacrossStrategicBusinessUnitswasleadingtopoorcommunicationsandcompetingobjectives.Eventhedefinitionsofbasictermsdifferedbetweenthesegroupsmakingeffectivecommunicationsandproblemsolvingdifficult,ifnotimpossible.Inaninterview,ACC’sExecutiveVicePresidentstated"Whenwediscussbusinessissues,wetakeforgrantedthatallpeopleintheconversationareonthesamepage.We’velearnedthatsimplyisn’ttrue.TheclarityofprocessdefinitionprovidedthroughtheuseofVRMandtheBPTFmethodologywillgiveusanimmediateimprovementinourabilitytotalkintelligentlywitheachother,tostandardizeourbusinessprocessesandtomoreeffectivelyaddressbusinessproblems.Thisisthefirsttimewe’llhavehadsuchaneffectivebusinessprocessmanagementfoundation.We’llstandardizeourprocessessothatwecanbegintodeliversustainableimprovementsinthoseprocessesandinourbottomlineresults.”