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Enterprise BPM by Charles Bennett (Part 3)

Some Trivia Shared in the Workshop

• Since 2005, more than 180000 business books have been written

• In Europe, average life expectancy of an organization is 13.5 years

• In 2011, GE lost 45% of its brand value

• British Airways known to have the maximum loss of baggage in airports – One of the key reasons was passenger and baggage volume at specific times of the day. One of the approaches to address this was to look at the customer as a business traveller; & not just as an air passenger. This provides opportunities for modifying the start and end point of a process and provides ample opportunities for cost optimization, improvement of service and revenues

• P/E ratio average is about 12. 20 is a very good ratio for any organization

• Original organization structure defined by Adam Smith in 1770. This top down hierarchical structure achieved 2400% improvement in organizational productivity

• Leaders who have not taken voice of customers for defining their products, services and solutions – Henry Ford  (Ford) , Steve Jobs (Apple), Jeff Bezos (Amazon), Richard Branson (Virgin), McDonalds – Focus on outcome based thinking

• BMW : Focus is on customer experience – Mission Statement “Give joy to customer”

• Times UK – Lost 30% of its readership just by changing Terms and Conditions

• America is a primarily services economy
o If a customer has a request, look at how it can be serviced
o If many customers have a request, look at how it can be standardized

• Google acquired Motorola Mobility for 12.3 Bn$

• Price point is independent of manufacturing cost and quality of building blocks that make a product
o Nokia Mobile 2011 Release – End-to-end cost of manufacturing – 122$ (Far more superior technology, Lighter, Advanced Features, etc.)
o Apple iPhone – End-to-end cost of manufacturing – 43$
And yet, customers prefer the Apple iPhone – Key reasons being customer experience and brand loyalty

• OTIS Elevators studies and looks at new ideas / innovations in the Japanese auto industry and NASA – Important to look at completely different industries to identify

• If you are planning to visit the UK and happen to come from one of the many countries that drive on the wrong side of the road, the following advice, direct from the Ministry of Transport, is for you: “Visitors are informed that in the United Kingdom traffic drives on the left-hand side of the road. In the interests of safety, you are advised to practice this in your country of origin for a week or two before driving in the UK.” (Src: http://users.telenet.be/worldstandards/driving%20on%20the%20left.htm )

• The width of a space shuttle was historically determined by the width of a train which would transport from the shuttle from the factory to the launch site.. For full story, refer http://www.astrodigital.org/space/stshorse.htmlhttp://www.naciente.com/essay94.htm.  And this width of a space shuttle continues to exist even today. What’s important to note is that the decisions of yesteryears which were driven due to practical and operational constraints decades ago continue to exist because we don’task the question WHY often enough…

• Important to understand the difference between (Examples below in context of a car)
Invention – E.g.:  Combustion Engine
Innovation – E.g.: Car body and design
Disruptive Change – E.g.: Mass production of a car to make it affordable

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

Enterprise BPM by Charles Bennett (Part 1)

I had the opportunity to attend the Enterprise BPM Worskhop By Charles Bennett from BPGroup  (http://www.bpgroup.org/). Event Details @ (http://www.icmgworld.com/shop/pc/viewPrd.asp?idproduct=645&idcategory=37#details)

Focus of the workshop was on process management, process improvement, process alignment and innovation. The application of how process diagnostics (Customer Moment of Truths, Break points and Business rules) can be leveraged to deliver Successful Customer Outcomes (SCO) was discussed along with case studies and industry examples.

In this 3 part series, I will write about

1) BPM Related Data and Points of Note 

2) Trivia shared during the Session

Below is a picture of Charles & Me at the workshop…

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