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“We had an overly complex implementation for our healthcare application process which was difficult to communicate and manage. Shelley helped by providing a process to develop a more effective implementation process and leading us through that. We now have a simpler more disciplined process which is easier to communicate. We are piloting it with current clients and using it as a differentiator in our sales process.”

Jack Johnson
CEO
AboveHealth

 

Setting up a BPM Measurement System - Part 3 of 3

Screen Shot 2014-09-08 at 12.06.04 PMIf you’re working on a single business process improvement project or many processes across the enterprise, you need a measurement system.  But how do you build one that is comprehensive, efficient and effective?  Parts 1 and 2 covered Levels 1, 2 and 3 measurement elements based on the process maturity graphic below.  This part covers Level 4 and 5 and a summarizing table. 

 

Measures in CMMI graphic

At Level 4, the organization is really using this measurement system in a  regular and consistent fashion. It is measuring all the processes, and continuing to monitor any processes that have been studied and improved or transformed.  It should have KPI measures related to process measures, and process measures available at different levels in the organization so that executives see the top level measures, senior managers know what they are responsible for (by process), middle managers know how their areas impact key measures and process, and the employee has certain measures to watch to see how processes are performing. And managers and employees can see how measures work in cross functional enterprise processes, beyond their sphere of control.  Of course that also means that there are escalation methods that bring attention and action when a measure says the company needs to do something to keep the process working. The Process Owner is still the main person in charge, but sub process owners and employees know how they contribute and what they can impact.

At Level 4 data analytics from a wider source of data can be combined to give better decision making capability, even predictive analysis. Social media data may be included; and if a BPMS system is used, it may be possible to change the process and impact the process real time as data triggers particular needs.

There needs to be a system to measure one process against another (and one subprocess against another) and a method of selecting which processes to work on next.  The process portfolio should be evaluated quarterly using performance criteria and against the enterprise strategy. Process projects (large and small) should not be initiated without this vetting—asking is this the right process to be working on now, do we have the right resources, what other processes will be impacted?

Level 5 – Optimizing is the highest level and means that the measurement system (as well as several other aspects of the Process Maturity) are working at the top level.  So process measures are a regular part of daily operations with employees and managers using the data to inform their decisions and action.  What is added at Level 5 is that suppliers and customers should be included in the processes. For measures this means company data is shared with suppliers and customers and visa versa, and all use the data and measures daily and in regular review.  That means the shared data is transparent for the needed parties.  This is clearly a much wider and more open information system.

Below is a table which gives these measurement elements by the five levels showing what is measured, who is responsible, what data is collected and how the measures are aligned with strategy.  This table can be a guideline to identify where your organization is now and what it needs to do next.  The table provides a comprehensive measurement system, but keeps it simple.  To make it efficient and effective, start small, make it available to all, and see what gets used.  Then improve it.  Write me a response if you see additional elements that are missing, or want to ask questions relevant to your organizational situation. 

Screen Shot 2014-09-08 at 12.37.46 PM

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