Recent posts about automation (3)

"Social" seems to be the buzz word, if not the implementation, in just about every enterprise application today. Some vendors have done a nice job identifying how to bring social into the realm of usability, while others seem to be delivering a lot of "check box" acknowledgement. Granted, the industry is in its early stages — with business process management vendors trying to figure out the right "formula" for integrating social with BPM.

At BP Logix we believe there are huge advantages to adeptly incorporating social with BPM — and we are already delivering on it. Well before Process Director was delivered, we were aware of the implications of social and that demand for it would be increasing. We recognized that there were elements of social that inherently solve issues of communication and collaboration among the various players in business processes. We observed how business process management software was being used and noted where we could leverage social to give process participants more opportunities for engagement and interaction. More than being "just software" the methodologies and strategies that make social what it is are fairly easy to understand. We also appreciate that people are good at using social tools to fit their needs.

At a first glance, social capabilities may seem to be too random and unstructured to be relevant to business processes. When most of us think social (at least initially) Facebook and Twitter come to mind as entertaining way to connect with others — rather than thinking about how social might be incorporated into a "process discipline" and accompany real business goals.

Yet, social is all about...well, being social. Rules about how communication and conduct should be handled in a social network are dictated either by users or owners. Users either comply or lose their effectiveness. With BPM solutions and workflow solutions, users want need to engage, share and collaborate. Rules facilitate and drive those interactions — but not for process actors alone. Rather, all interactions are intended to get closer to delivering on the goals of the business. Social groups tend to like relying on rules— so a BPM software solution that leverages rules is a good fit.

Ultimately, social software creates new pathways along which business processes can travel. Because it is also simple and recognizable, social software allows customers, partners and others in the ecosystem to feel more comfortable engaging with processes —and allows different parties to collaborate and fuse their data and decisions. This leads to more inclusion and contribution, which might not be as readily available without an entree like social.

This is precisely what we saw and heard from partners, customers and prospects. Their needs could be solved with some of the same behaviors that are a natural aspect of social networks. We decided to help users take advantage of what they already knew and apply it to solving business problems. We suspect that integrating social with BPM may lower the barrier to entry, involve more people, accelerate the learning curve, and decrease some of the hierarchical limitations that exist in many organizations.

Process Director  provides social media integration that encourages organizations to apply the best practices of social to business process planning and implementation. Social is big and trendy — yet we have figured out how to apply it in a way that helps drive business progress. And we will continue to do so.

Baseball legend Dizzy Dean said, "It ain't bragging if you can do it".... From the baseball diamond to the halls of the enterprise, it ain't bragging if it delivers actual results.

At what point will your organization be ready to adopt a business process mindset and implement a process-focused way of working?

We wish the answer could easily identified, like some ancient Zen wisdom ("You will know when you are ready!"). As with the adoption of business process management itself, however, you will need to strategize and plan – then create the vision and train your staff to be successful.

The most important element to BPM software readiness is willingness. As discussed in Part 3 of this series ("Do You Have a Process-Focused Organization?"), an organization needs to be self-aware regarding both its shortcomings and strengths in order to understand how BPM software can aid in improving the organization. From there, the organization has to be willing to undergo ‘change’ in order to ultimately achieve the results it wants. This is a critical point.

All enterprises seek improvement from new technologies and business methods, yet there is a certain amount of naiveté in thinking that simply buying and using a new tool will ensure success. BPM is not a conventional “tool”, and it cannot be ‘dropped in.’ Rather, BPM needs to be integrated into how the organization works. It is not ‘one button-click away’. The essence of what BPM is and provides has to be embedded into the minds of employees and manifested in their work.

Whoever leads the BPM charge in an organization needs to communicate the impending changes in a way that emphasizes preparation. BPM adoption can be initially disruptive because it is something that can only be conducted through humans. (We are not focusing on technology solutions here.) That disruption, however, can be minimized by willingness to embrace the change. The staff should understand what to expect and feel supported. Most notably, employees should be aware of the following:

• Long-term impact: The business initiatives that people work on do not change simply as a result of BPM adoption; the way in which they are conducted, however, does. The initial impact will occur in their daily work, yet the results will not likely be ‘fully realized’ for a period of time. As a result, awareness of what is to come will impact the transformation. It is important to be patient with the people who will be using the new business processes. Their adjustment to the new process, and acceptance of it, will ultimate impact the results and make the process itself more successful.
• Vision: If you communicate your vision to your team and set the tone for what is to come, you will create buy-in from participants. You do not need to wave the BPM flag and rally the troops. You do, however, need to create a sense of hope that, combined with a realistic set of expectations, will enable your team to recognize when they are arriving at their goal – and when they have achieved it.
• Understanding business reasons: The question on most people's minds (but one that few will actually ask) is a simple one: "WHY are we doing this?" Be very clear as to the business reasons for implementing BPM. It is not enough to point out broken processes or inefficient activity. (One should also not presume that employees are unhappy with the status quo. Often it is quite the opposite.) Since you will have done a great deal of work to identify a solution to known issues, sharing this with employees should be part of your implementation plan.
• Timeframe: Too many solutions are geared towards a launch date. For a new technology implementation, that may be fine for at some point “it” has to be turned on. BPM may be turned "on", however the impact is truly felt only after it has been given time to work — and after people have adapted. At that point they can begin to see process improvements. Your organization should be aware that BPM is iterative and ripe for improvement the longer it is used. With BPM you don’t need to wait for new versions in order to see improvement. Instead, the participants can make it better the longer they work with it. Patience is key.
• Desire: It is difficult to instill a ‘passion for improvement, as we cannot truly know what makes each individual ‘tick’. With the support of the executive team, you can set the tone for how you want your business to operate. Demonstrating sincerity for changing the way you do business and improving the work environment goes a long way towards helping staff become comfortable with the forthcoming changes, and at the same time, embracing them.

After all the research, strategizing, planning and training there will come a time when your teams are working differently, with noticeable results and recognizable improvement. Don’t underestimate the need to prepare and communicate with your stakeholders in advance, however. They are the ones who will ultimately determine the success or failure of your BPM implementation — and it is they who should feel supported and recognized as a key part of the success of your BPM initiative.

Learn more:

• Organizational Change and BPM, Part 1: Know Thyself (and Thy Process)
• Organizational Change and BPM, Part 2: Do You Have a Process-Focused Organization?
• Organizational Change and BPM, Part 3: We Sell BPM, But Should We Sell It To You?
• BP Logix: A KMWorld Magazine 100 Companies That Matter
• Request a Free BPM Software Demo of Process Director
• BPM Value Estimator: Just where do you find value with BPM?

In today’s competitive market, you, or we,  would be hard pressed to find executives who do not want their companies to be better organized and more efficient. Most C-level leaders pepper their speeches and memos with messages that implore employees to find smarter ways of working, techniques that will maximize their business process improvement efforts and reduce or even eliminate repetitive tasks. The hope is that somewhere between "working smarter" and “a validated bottom-line improvement” some actions will occur that make that vision a reality. Unfortunately, that middle ground between desires and outcomes is usually where the best laid plans often go astray.

Our corporate leaders  have demanding jobs and, as a result, normally do not get too involved with the many projects required to carry out their vision and strategies. Rather, they hope their ideas and exhortations will drive the actions of their staff — and encourage people to take the appropriate risks to deliver on their vision. The identification and execution of those tasks, however, often gets lost somewhere after being “announced” in a PowerPoint presentation. The reason the delivery of a mission fails to happen has a lot to do with execution — or lack of it.

There is nothing wrong with a CEO who demands a better way of working. His or her credibility is often based on the ability to set a course of action based on articulating the vision. One of the keys to achieving goals lies in creating a foundation that is process-driven. Given the right preparation, employees can take management concepts and devise a plan that will  deliver results. The link between strategy and delivery is execution — one that is based on a repeatable, understandable set of systems and workflow processes.

To implement a vision for the business (irrespective of who is demanding the change), organizations must have a core belief in the value of “process.”  And it is forward-looking companies that recognize and lend their support to the impact of process within their organizations.

Even for those that already do recognize the value of change, it is still worth the time to look more closely at how the company views its business processes. Are employees operating according to uniform, yet flexible, processes — or do they forsake logic and hope that a tool (even a great BPM software) will do the work for them?

The good news is that even companies that fail to follow a rigorous business process can, with some discipline, operate more efficiently. The principles that establish a successful process mindset include:

1. Operating according to established rules: Without a framework for action, a lot of time can be spent creating a new process each time a task needs to be accomplished. Process-based organizations have defined rules for how activities are handled, who is responsible for what, and how approvals are handled. Relying on these rules means that employees can focus on outcomes, rather than on process itself.
2. Change is valued: Many executives are good at identifying activities that provide quantifiable benefits, especially where incremental business process improvement (BPI) is not a huge challenge. Executives choose where to focus, putting energy into tasks where there's a reasonable expectation of success. Some, however, recognize that victories of the repeatable type are important but do not necessarily drive business forward. Implementing the types of activities that both initiate and drive “process” will help the organization to be more successful. Change can be embraced because there is confidence that established processes will prevent operations from being derailed.
3. Execution is decentralized: Organizations that operate with a top-down approach may stall when trying to implement a process. When Lines of Business managers and directors are given the authority to decide and implement business processes (done so, of course, in accordance with accepted organizational rules and best practices), the results increase dramatically. When the “process mindset” is embedded into the thinking of managers and employees, execution  improves significantly.
4. Risk is inherent in doing business: Certainly there is some risk involved with implementing new ways of doing business. New ways of thinking run the risk of causing dissension, distractions, and sometimes simply fail. Some organizations are also risk averse.  Those that are not, however, embrace the changes that result from implementing better business processes. They recognize that risk is inherent in doing and growing the business — and they believe that improving their processes will provide a competitive advantage.

When you begin thinking about “process” and how to drive your business to the next level, self-evaluation is crucial. Does your company value and understand the benefits of process? (Automating, streamlining and becoming more efficient are the most frequently cited benefits.) Do you have a process mindset? If you can answer affirmatively you are on your way to process nirvana (well, maybe not quite). Those who are not yet “there” need not fear. We will look more closely at what that mindset looks like in part four of our series.

Learn more:

• Organizational Change and BPM, Part 1: Know Thyself (and Thy Process)
• Organizational Change and BPM, Part 2: Do You Have a Process-Focused Organization?
• Organizational Change and BPM, Part 3: We Sell BPM, But Should We Sell It To You?
• BP Logix: A KMWorld Magazine 100 Companies That Matter
• Request a Free BPM Software Demo of Process Director
• BPM Value Estimator: Just where do you find value with BPM?

Smart businesspeople are always looking for ways to improve operations. "Faster is better" is often the mantra, as we humans are somewhat predisposed to looking for ways to arrive ‘there’ (wherever that may be) more quickly. In today’s technology-driven world, that means we usually default to looking at devices and software to help us get where we need to go faster than anyone else.

While technology can often deliver noticeable value when an organization needs things to change, the people choosing the BPM solution don’t always account for the fact that humans need to guide the actions coming from the technology. BPM software and workflow software itself is basically worthless without engaged and motivated people trying to mold it to fit an organization or solve a problem. All too frequently we rely on a solution to take care of itself, forgetting that it is the job of business stakeholders to act as caretakers of the business – not only the software that runs it but also the covenants and guidelines by which that software performs its job.

The adage "garbage in, garbage out" is too often ignored. A tool (software, process, hardware) is only as good as the data that goes into it. For a technology solution to work, it needs to have been well thought out — and directed at a specific solution. The tool you choose to solve a problem might be fundamentally sound, but the way it is implemented might be flawed. When this happens, the results of your efforts cannot be as profound as they could be.

The cultural changes that need to happen before you implement BPM have to do with this mindset. Undoubtedly you will encounter people within your organization who want to open a metaphorical box labeled "BPM", plug it in and start using it. They believe that THAT is what process change is all about. You certainly do not want to disabuse them of the notion that business process management (BPM) can bring about massive change — but it behooves you to get them to recognize that the way they work may need to change (at least somewhat) before any tool can bring about improvements.

The BP Logix approach begins with first understanding your business and your needs. That may sound simple enough, but businesses are complex, and it is not just a matter of us reviewing a checklist of issues. The first step involves you communicating your vision and needs. How we address those needs to provide a solution that brings value to the organization is the next part of the dialogue. Just doing things faster, or even just doing them differently, is not necessarily going to give you better results. The opportunity to learn about your business, opportunities, gaps, and how a solution might help you achieve specific business goals is the next step in our conversation.

This is where the culture of change begins to take shape, and where an organization can gain a better understanding of how it can automate processes as a way of doing business (not just as a tool). Decision-makers will be best served if they think of change as an evolutionary part of their business, not a goal unto itself. As they consider BPM solutions that will help them automate tasks and implement workflows, they should also think about how ‘process change’ can be manifested throughout the organization. Change can be good— but if there is no fit culturally or environmentally, or if attitudes impede innovation, it is likely that no solution will work.

Thinking through the issues regarding what is important to your business will help you get a better understanding of the type of solution that can help run your business — and result in a greater impact on your goals. When considering your current state and its  challenges, these conversations will hopefully guide your thinking regarding the fundamental aspects of how — and whether — your organization’s culture can capitalize on process change.

Learn more:

• Organizational Change and BPM, Part 2: Do You Have a Process-Focused Organization?
• Organizational Change and BPM, Part 3: We Sell BPM, But Should We Sell It To You?
• Organizational Change and BPM, Part 4: Preparing Your Organization for BPM
• BP Logix: A KMWorld Magazine 100 Companies That Matter
• Request a Free BPM Software Demo of Process Director
• BPM Value Estimator: Just where do you find value with BPM?

As companies expand into new geographies and adapt to rapidly-changing technology, the very nature of their work has changed. When we consider the intense scrutiny now being placed on their operations as a result of increased regulation that work has becomes even more complicated.

 This is the natural state of today’s financial services industry. Retail banks, investment banks, savings and loans, brokerages, hedge funds etc., all deal in the world of data and transactions. As a result, and to satisfy the best interests of customers and stakeholders, they need to adhere to specific sets of standards. Due to both government and industry regulations, they face legal jeopardy if they cannot demonstrate compliance management solutions with legal mandates. With the proper mindset and tools to address issues of consolidation, compliance, reporting and a host of other activities, financial services firms can operate more effectively and efficiently.

In this highly regulated industry, businesses tend to have fairly complex actions as part of their regular business operations. This magnifies the need to develop and manage activities as actionable and reportable processes. An example of this is Stillwater National Bank and Trust company (SNB), a BP Logix customer. We began working with SNB to automate its loan credit and accounting processes and more than 150,000 forms used by employees across 28 locations. SNB turned to BPM to improve its customer service, address compliance requirements and ensure a more efficient and cost-effective operation overall.

Streamlining the loan credit process, as well as improving Accounts Payable processes, were key requests from Laura Briscoe, SNB's Director of Information Services. Her initial requirements indicated that the solution needed to be:

1) Browser-based

2) Provide rule-based routing

3) Be able to handle complex logic

4) Offer a user-friendly dashboard with search and proxy capabilities

5) Provide integration with SQL, Active Directory and SharePoint

While doing a cost-benefit analysis Briscoe found that she could do everything she needed to with Process Director -- including complex logic for forms, spawning, different rule sets and calculations on loan documents. As a result of streamlining the loan credit process, SNB is reducing  man hours, time and money and  have a well-documented and audited process. According to Briscoe, “With Process Director, we will be doing what we do now – on steroids.”

Process Director enables users to review historical and current data related to business processes, understand the implication of activities in running processes and implement corrective action to overcome a pending problem, if one is present. Process Director fuses traditional business process automation software technology with BPLogix Process Timeline™. The Timeline enables process builders to specify dependencies and conditions, determine the planned duration of a process, and define the order for all activities within the process.

Process Director BPM software provided business process governance and BPM compliance solutions which led to business process improvement that SNB required, that demonstrated compliance with regulatory and industry standards. The result was not just adherence to those standards, but improvements in end user productivity and SNB’s bottom-line.

Learn more:

Just about every conversation about business process starts with some promise of "increased productivity" and ends with at least one party frothing at the mouth in anticipation of a demonstrable improvement.  ("Just how much productivity improvement did we see?")

There are all kinds of formulas for deriving a metric for business process improvement (BPI). Just as numbers and percentages can be impressive, so, too, can they be deceiving. Each organization operates with its own set of goals and relies on performance indicators to determine its success. As a result, it is difficult to provide a specific number or percentage that indicates better or more productivity. (Remember the old adage about the shady accountant who, when asked to do the books, said, “Just tell me what you want the numbers to be, and I’ll make sure they add up that.”) We all can identify impressive numbers however they will probably not be defensible, nor appropriate, for making reliable business decisions.

Surprisingly, we find that the same principle applies to many vendors who will show prospects a ‘25% increase in productivity or a 31% decrease in redundant processes.’ Those numbers are likely to be unique to a certain industry or to a specific organization.  Applying the logic, process and BPM software for an auto manufacturer doesn't automatically equate to identical success with a chain of donut franchises. This isn’t news to anyone who has ever scoped out or implemented an automated workflow process, yet it is still how software is often sold!

We, on the other hand, believe that making decisions regarding how you develop your BPM system requires knowing what you ultimately want to achieve -- and the results you will use to determine your success. To start, there has to be agreement within your organization that using BPM software begins with a specific mindset.  We initiate BPM with one fundamental understanding:   when we talk about automating any set of processes the result is, often, changes in the way those processes are performed. The hope (and goal), is that the automation alters things to a point where the organization recognizes and eliminates waste, reduces and eliminates redundancy, and identifies a “better way.” That is not necessarily a Holy Grail, but if anything ‘should’ be derived from a focus on business process management (BPM), it is that a “better way” inherently brings with it an increased sense of how to achieve increased productivity.

With this new mindset you can truly begin to apply business change management to what you are doing. Some organizations leave this aspect of business change to training (and to pleas about “working smarter.”)  That is a tall order for any organization – as businesses do not (and cannot) come to a grinding halt while we figure out how to change the way we work. BPM tools institutionalize this new way of doing business – and automating business processes is probably the simplest yet most impactful aspect of a BPM system.

If your organization’s mindset is geared towards thinking through its processes in a thoughtful, rational way, then in automating these processes you will start to see tangible changes to productivity: fewer people required to perform certain tasks, less time needed at decision points, greater transparency and more flexibility.

Consider implementing a BPM framework at Lucille’s Global Widget Corporation and another at Fred’s Fish Hatchery. The decision points and actions for effective widget production are completely and totally different from what is required to hatch fish (or breed fish… I’m not altogether clear on what hatcheries do.) Lucille sees a 17% increase in productivity that is saving her $5.3M over her closest competitor. Fred, meanwhile, is increasing his company’s productivity by 38% which, as it turns out, is ‘average’ for those in his industry. Both are reaping huge benefits and both require constant attention to the methodologies and management of their BPM tools. Both are feeling positive about the improvements to their businesses -- and both can point to automation of processes as the main reason for these improvements.

There is no doubt that the value in implementing BPM is real.  Ask any of our customers! They are saving real money; money they are re-investing in their businesses and distributing as increased profits.  Part of that “real” value, however, lies in knowing they have a solution that fits their needs and is specific to their businesses.