Why Business Process Management and Six Sigma are needed in today’s business environment?
This talk will provide an overview of both Six Sigma and BPM to indicate where there are synergies between the two types of programs.
BPM builds the framework to create strategic alignment, measure business processes using metrics aligned to business goals, and identify performance gaps that have a major impact on the customer and on achieving desired business results.
Six Sigma can be used as the vehicle to implement the methodology, prioritize the projects, stabilize the processes and close the gaps.
Together they provide a process enabled and customer focused enterprise.
Executives manage operating risks in a variety of ways, though few directly manage the risks associated with human capital. In the service industries, performance measurements like productivity, quality, customer satisfaction, and schedule variance tend to be addressed in a general sense. Issues of executive accountability rise to the surface and underscore how very important performance measurements are to operating excellence. The problem is that company boards really don’t employ a systemic methodology for valuing the strength of executive management talents relative to the risks they present to the business.
Hedge funds and their management strategies are directly applicable as a model for managing executive performance. Not only can companies short their exposure in more risky assets, but they can also arbitrage undervalued business units and organizations. The parallels with hedge funds illustrate the application of mathematical concepts like Alpha, Beta, and the Capital Asset Pricing Model. Moreover, companies can establish the framework to proxy fiduciary responsibility to their executive team by addressing the fundamental concept of risk versus return.
By: Daniel J. Madison, Author of "Process Mapping, Process Improvement, and Process Management" and Owner, Value Creation Partners
The frustration lens diagnoses the process from the perspective of those who work in it. The purpose is to learn what frustrations people experience when doing their work. You can ask people about these as you create the as-is-flowchart, or you can complete the chart first and ask later. Use the first method if the process is relatively short and there aren’t many frustrations.
By Alan Ramias, Partner, Performance Design Lab
For years my partners and I at the Performance Design Lab have defined a business process as “a sequence of steps or tasks that produce a valued output”, or words to that effect. Every definition of process I have seen in the books and articles written by others use pretty much the same verbiage. Nothing wrong with the definition - it does describe what a process consists of - but it does nothing to indicate some of the key principles of process design, nor does it do more than hint at why processes are so important (i.e., “valued output”).
So we have come to modify our definition
This presentation leverages a real-world case study in which a large, quasi-government organization developed an enterprise process model with over 1,000 diagrams over the past 10 years. We’ll review the drivers behind this initiative, how the model evolved over time, and what we learned along the way. For those thinking about a need for corporate process documentation, this is a great place to start. For those already working on corporate process architectures, you’ll come away with new ideas. This presentation is not “pie in the sky” – you’ll see what it takes to govern this information, the kinds of standards that are put in place, and how this information is leveraged to improve organizational performance.
Businesses can no longer take months and months to redesign processes. The Value Chain Requirements Management (VCRM) framework is a customer-focused process that effectively translates strategic business and customer objectives into clearly defined and actionable requirements. These requirements become the basis for streamlining process re-design and implementation. A Fortune 100 company case study will be presented demonstrating the VCRM process methodology and business results of 30%+ reduction in design and implementation time.
One of the most critical issues facing BPM proponents is the perceived gap between business needs and IT methods. According to CIO Magazine, the gap between IT and the businesses it serves continues to be a top issue of CIO’s year after year. This presentation is one of three that together offer a model that IT shops can use to ensure they are effectively aligned and driven by a clear understanding of the business. The presenter is Alan Ramias, partner at The Performance Design Lab and a 25-year veteran in BPM and performance improvement. Alan’s presentation will focus on the components of an effective and complete Business Architecture, while his partners Cherie Wilkins and Rick Rummler will provide companion presentations that drill down into other areas of the model.
Contributed by:Marvin Wurtzel, Faculty Member, BPMInstitute.org and Principal Consultant,
Marvin M. Wurtzel & Associates, Inc.
By: Marvin M. Wurtzel, President, Marvin M. Wurtzel & Associates
Six Sigma has an attractive value proposition. Increase profits and improve customer satisfaction through more effective and efficient business processes. What company could say no to this idea? But, the Six Sigma methodology often is associated with daunting myths that prevent companies from taking advantage of its potential. For example, it’s assumed that Six Sigma is strictly for manufacturing processes, doesn’t work with Business Process Management (BPM).
So many speak about BPM and process, but so few have data on its value, a particularly vexing problem when needing to develop “buy-in” and executive sponsorship for large-scale BPM application and enterprise transformation. This presentation walks through several studies done on the value of the BPM standards in Supply-Chain, Design, and Sales and the clearly measurable benefits of in profitability, revenue, and share value, and ROE which have accrued to lead-edge process management enterprises.
By: Caspar Hunsche, Managing Director, Process Core Group
In my previous article, “The Design phase”, I discussed the concept of designing the change from the current way the process operates to the improved way with very few constraints. Does this mean that you can do without rigorous deployment planning? No, but you need to separate the discussions: First focus on what needs to be done. What type of changes need to be made, what type of skills do I need on my projects to make those changes, and what changes are dependent on each other: understand the possibilities.