Complexity is the result of lack of alignment to customer success (Part 1 of 4)

There is no excuse for complexity. It is a consequence of muddled thinking and a lack of understanding of the true goal of the organisation, which is creating Successful Customer Outcomes.

Complexity has developed as organisations have added new routes to market, new ways of delivering service, new enterprise IT systems and a myriad of improvement approaches. Each internal functional specialism has developed a mindset to optimise their part of the organisation, sometimes at the expense of others. The unwieldy complexity that results has caused a reaction primarily aimed at the need to create order out of this chaos, as if accepting that complexity itself as a right to be. This is not so. Let us unravel the muddle of complexity once and for all.

All work in an organisation is fundamentally created by the need to provide product or service to the customer. Everything else is a consequence of that need, which creates value for the shareholders and creates a livelihood for the work force. All else follows.

Furthermore all interactions in meeting the needs for customers are the cause of all work within an organisation. These interactions, or Moments of Truth[i], create work in so far as we need to attend to a request internally.

In doing so we interact with our colleagues, systems and other internal processes, and create internal Moments of Truth, which can be referred to as Breakpoints[ii]. The way we deal with Moments of Truth and Breakpoints is underpinned by Business Rules[iii] which may be thought of as ‘decision points within processes’.

These three entities determine the shape of our organisation, the internal landscape of how we do work. The resulting activities from Moments of Truth, Breakpoints and Business Rules create the very processes themselves. In fact process is simply an effect caused by the way we choose to interact and guide the customer to obtain our products or service.

Think about that – process is an effect. If that is the reality then the vast range of tools and techniques created in the last century, and sometimes before, are fixing an effect. It is like taking painkillers for discomfort and nothing more. If we are not getting to grips with the causes of the pain it will surely get worse and as we discover, stronger pain killers are then required.

That’s the rub. We have been systematically fixing the wrong things and is it any wonder that change doesn’t stick? Have you ever had that feeling that this is the same project challenge as before, just dusted off and here we go again? It is because we are not fixing the causes of work, and while we continue to ignore the causes the complexity worsens, costs increase and service suffers.

Einstein put it well when he said
“We can’t solve problems using the same kind of thinking we used when we created them”

Part Two: Case Study – UK Bank “How complexity developed” – See http://bit.ly/LBhwq

[i] Moments of Truth – a concept discovered and explained by Jan Carlson.
Any interaction with the customer is a Moment of Truth.

[ii] Breakpoints – internal handoffs within an organisation.

[iii] Business Rules -Decision Points within a Process.

Latest Includes: You can’t manage what you can’t measure (or can you?)

The weekly update on the BP Group LinkedIn has some interesting perspectives:

Group Metrics:
Members: 2,356 (up 370 from last month)
Discussions: 220 (Each Month)
Subgroups: 4

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Articles/Discussions underway this week – more than 224 underway!

Dick Lee – You can’t manage what you can’t measure (or can you?)
http://bit.ly/1JhU53

Steve Towers – BP GROUP SOAPBOX 2: Six Sigma caused the Financial crash
http://bit.ly/5DZ21

Thomas Olbrich – Barriers to Outside-In (Outside-In subgroup)
http://bit.ly/jIPF8

Janne Ohtonen – The Gap Between IT & the Business (Research & Study subgroup)
http://bit.ly/ETOXE

Fast links to key BPM resourceshttp://bit.ly/Hd1pB

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Subgroups:
Steve Towers – Group Controller and the Business Process Professional subgroup
http://www.linkedin.com/groups?gid=2056203
Also on twitter – http://www.twitter.com/stowers
Connect directly – http://bit.ly/11txOl and if you need an email use steve.towers@bpgroup.org

Dick Lee (US) – Group Manager and the Outside-In Process subgroup (100+ members)
http://www.linkedin.com/groups?gid=2057992

Janne Ohtonen (Finland) – Group Manager and the Research & Study subgroup
http://www.linkedin.com/groups?gid=2060282

John Corr (UK) – Group Manager and the Advanced Process Management subgroup
http://www.linkedin.com/groups?gid=2056169

Stéphane Haelterman (Belgium) – Group Manager
David Mottershead (Australia) – Group Manager
Erika Westbay (US) – Group Manager

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Do you need Business Process Management, Certification (7,000 in 4 years), or Coaching Support?
Visit http://www.bp2009.com for the program or learn more at http://www.businessprocessprofessional.com

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Webinars:
Quick Update on the mid year series underway. All Registrants will receive a copy of the webinars when the series completes

The sessions so far are producing lots of feedback and we’ll make available a review of these soon.
If you would like to join in then this week features FIVE Free webinars.
+++ For CPP people these webinars add 2 credits for certifcation renewal in 2009 +++

Review and register at http://www.bpgroup.org

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Recommended Conference (This week) – http://bit.ly/3bb8mZ
Recommended Conference (January 2010) – http://bit.ly/w2JWW
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Fundamentally flawed thinking (for the 21C) is why companies like British Airways and the Detroit car industry are going bust.

This example tells you much about the demise of many – see http://bit.ly/drVHa – with the quote from CIO Update “A process is a process is a process, whether it is the manufacturing floor or airline passenger check-in. And what worked for manufacturing in Detroit years ago is also working for British Airways.”
(as a matter of fact it isn’t)

This typifies the inside-out thinking which does not acknowledge anywhere near sufficiently the Successful Customer Outcome. It might have worked in the 70’s and 80’s but it just isn’t sufficient anymore.

There’s an active discussion underway on the BP Group LinkedIn community – join it here http://bit.ly/eHSEz

Fundamentally flawed thinking (for the 21C) is why companies like British Airways and the Detroit car industry are going bust.

I have lifted this from the BP Group Linked-In as it seems very appropriate in terms of Successful Customer Outcomes.

This example tells you much about the demise of many – see http://bit.ly/drVHa – with the quote from CIO Update “A process is a process is a process, whether it is the manufacturing floor or airline passenger check-in. And what worked for manufacturing in Detroit years ago is also working for British Airways.”
(as a matter of fact it isn’t)

This typifies the inside-out thinking which does not acknowledge anywhere near sufficiently the Successful Customer Outcome. It might have worked in the 70’s and 80’s but it just isn’t adequate anymore.

The BP Group and iCMG have a FREE webinar on this theme on Tuesday 2nd June – ‘BPM, Evolving beyond Lean & Six Sigma’ – click this link to join: http://bit.ly/krEnR

We will demonstrate precisely why companies like BA have it wrong, and what you can do immediately to ‘do it right’

A few hours later after this initial post I received a rather terse reply regarding BA in my private mail… which allowed me to follow up as follows:

Oh dear. Given the private comment I have just received it looks like someone is a tad upset and everything is really OK with BA. We are sticking to our guns as the ultimate judge of that is the customer who by buying (more) product and service endorses the business model.

One of the features of ‘inside-out’ companies is the way people blame others for their ills – even though they were the ones responsible for the mess.

If you need more evidence read this interview from last months Information Age http://bit.ly/rKs6O which featured their CIO blaming the British Airport Authority (BAA) for the Terminal 5 debacle. All those lost bags, disastrous service, hopeless communications, pitiful systems etc.had nothing to do with the new lean technology (apparently – honestly). No I suppose it was the tooth fairy again eh?

Now don’t get me wrong I would love BA to become hugely successful (as I need to fly their routes often) but the first stage of that is sorting out the mindset within. A good start is truly understanding the only reason you have a job is because of the customer. Get that and then make sure everything you do makes the customers lives easier, somper and more successful.

If BA don’t get it together soon then extinction is their final destination.

References:
BP Group – Global not for profit business club with 32,000 members – FREE membership, join at

LinkedIn – BP Group discussions, presentations, toolkits, video, downloads

BP Community blog– Articles

Customer Expectation Management Method (CEMMethodtm)

Business Process Professional – Certified BPM Training

Summer Webinar Series (free to BP Group members)

Contact the author – Steve Towers
web – www.stevetowers.com
linkedin – www.linkedin.com/in/stevetowers
twitter – http://twitter.com/stowers
email – steve.towers @ bpgroup.org


BPM Weekly Update from the BP Group

BPGroup weekly LinkedIn update (152 discussions, 1815 LI Members)

Video keynote from Gartner conference – http://bit.ly/gW4zi
What are the top Outsider-Inners doing – http://bit.ly/R4RiA
Top Discussion – http://bit.ly/O7WUH
Are “Bolt-On” BPM Systems Running Out of Market Space? http://bit.ly/VT4Je
The Best Way to pitch BPM (summary) – http://bit.ly/JfWkl
and….
FIVE Webinars in progress – http://bit.ly/kG4WI
Business Process Professional training – http://www.bp2009.com
Newsletter for May (last week) – http://bit.ly/12Lcop

All the Best, Steve

PS. Monthly newsletter next week – new ICMG webinars also

Learn more about business process management – and get certified!

If you’re like most other professionals, the economic downturn has you looking critically at business processes. Want to learn more about that?

In mid-June we are conducting the Business Process Professional course – via the BP Groups Certified Process Professional programme.

Developed over ten years and with more than 7,000 Certified Professionals since 2005 it features the latest case studies, best practices and a complete method for implementing advanced BPM as featured recently on radio and TV.

The course is very well regarded by attendees and takes place in central London. You can get more information here.

Alan Trefler – The wonderful Wizard of Oz? – Gartner, San Diego


At the recent annual Gartner BPM conference in San Diego, diehard BPM veteran Alan Trefler of Pegasystems (founder and CEO) gave his keynote presentation. Trefler began by reminding the audience that in today’s turbulent economy we are all “not in Kansas anymore” and may just need some fancy slippers to find our way back home to success and profitability.

Get yourself a coffee and revisit the Wizard of Oz for quarter of an hour with Alan Trefler – Video (you will need to register with Pega but that just takes two minutes) Event here

Whatever next “Stargate BPM”? 🙂

Oh for goodness sake now its Twibes!

Look I am not complaining. I have been banging this drum called BPM for 17 years (yes I am a grandad) and now look what happens. Last month it’s the BPM Nexus and now today it is BPM Twibes. The link is below for the masochists who want more information overload – it’s too late for me already 🙂

Next I anticipate Tribbles (Trekkies will understand that one). Come to it in the new Star Trek perhaps they’ll make a return (sorry completely off topic).

If you have stuck with me so far you can join my Twitter at
http://twitter.com/stowers
and the new BPM Twibes thing is leaving the station now from platform http://twibes.com/BPM just jump onboard!