Enterprise BPM by Charles Bennett (Part 2)

BPM RELATED DATA & FACTS
• Only 1% of global organizations are looking at business process from the “right process perspective”
• 17 out of the top 20 organizations are really looking at processes from the customer perspective – Examples are South West Airlines, BestBuy, Apple, Zara, etc.
• Zara customer experience is the process : Takes 1/40th of industry average from start to finish for producing a piece of garment
• In most organizations, 25 – 50% of costs are redundant (non-contributory)
• For 1 bad reference in a customer forum, you need at least 10 good references to neutralize / negate the impact
• In 2011, 70% of BPM projects have not achieved the results they wanted to and have failed

POINTS OF NOTE
• Processes are the DNA of any organization
• First step in gaining control of business is to know and understand business processes
• An optimized process has minimum points of failure (POF)
• Customer centric BPM solutions aim to focus on cost model, service model and revenue model
• Truly customer centric processes focus on identifying and servicing customers based on successful customer outcomes (SCO).  End goal of any process should be to deliver “Successful Customer Outcomes” (SCO)
• Prosumer – Educated customer who is knowledgeable than the provider itself
• For definition and execution of an optimized process, following are important:
o Process Diagnostics
 Identify Moment of Truth (Customer Touch-points)
 Identify break points (Internal system hand-offs) – As a general guideline, for every Moment of Truth there are 4 break points in any system
 Identify business rules (Decision Points)
o Risk Assessment & Prioritization based on
 Impact to customer – High, Medium, Low
 Impact to organization – High, Medium, Low
o Action Plan
• Process Goals should be SMART (Successful, Measureable, Attainable, Relevant, Time Bound)
• Any customer Moment of Truth has the potential to be:
o Magic (Positive)
o Misery (Negative)
o Indifferent
• Points of Failure = Sq.(Moment of Truth – 1) + Break Points
• Steve Towers Blog (Founder & CEO of BPGroup) @ http://successfuloutcomes.blogspot.com

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