BPM and the Balanced Scorecard

Yesterday we posted wrt Skill and competences within BPM (see http://bit.ly/BPMskillsets)


Today, the third in our series celebrating the run up to our 20th anniversary we cover the challange of Balanced Scorecards and BPM 🙂
 
In a few weeks time the BP Group will be twenty years old. As part of the celebration we are publishing an article a day – all are evergreen and provide an insight as valuable today as when they were originally published.

Looking at the world Outside-In

Outside-In wins the Triple Crown.

The headline claim of advanced process management approaches such as ‘Outside-In’ is winning the triple crown. What do we mean by that?
Triple Crown is the ability to simultaneously reduce costs, improve service and grow revenues as a direct consequence of implementing advanced process management. Outside-In shifts attention from ‘doing things right’ to ‘doing the right things’ and as a consequence much of the work taking place within an organisation becomes ‘dumb stuff’ when tested against the achievement of the successful customer outcome. This ‘dumb stuff’ can be eliminated and typically will result in cost reductions of 40-70% within three to six months of implementation across traditional processes.

What does the cost reduction include?

A large slice of reduction is in the potential effort to run a process – the people. It also includes considerable swathes of information technology, now no longer required to manage the significantly simplified ‘outside-in’ processes.  Saves are also available across the enterprise from reducing the need for ‘outsourcing’ that does not explicitly contribute to the delivery of successful outcomes. Progressive Outside-In companies such as Google, Apple, Gilead Sciences and Southwest airlines actively redeploy staff to the benefit of the bottom line – making more with less. Service improves and revenues grow.

Traditional inside-out companies have a massive opportunity

The size of the prize exceeds normal ‘inside-out’ expectations as many companies who measure efficiency and effectiveness struggle to realise single digit improvements against legacy processes. However when you look at processes through the ‘outside-in’ lens much of the previously assumed ‘must be here’ activity is no longer required.

Why is this so?

Work has grown over time and become complicated and separated into functional specialist areas supported by a multitude of IT systems undertaking specific tasks such as CRM, accounting, claims management and HR systems. In the context of Outside-In these activities can be challenged with the question “does this activity specifically contribute to the achievement of the SCO? “. If the answer to that question is ambiguous then applying relevant techniques creates a  realignment of work and releases significant cost previously disguised as necessary process.

Triple Crown plus

It gets better. The reality of processes in an Outside-In context means they are specifically contributing to the achievement of the SCO and correspondingly meet additional requirements such as compliance and regulation more effectively. Transparency of process – seeing who does what, where, when and why – is another by product of the new environment. So in addition to reducing costs, improving service and growing revenues we better meet regulatory requirements. The latter is especially important in the new business reality created following the recent recession and reshaping of industries such as banking.

If it is so good why aren’t we all doing Outside-In?

Large bureaucratic organisations typically suffer from senior management inertia, disbelief and arrogance.
The reality of successful Outside-In companies is plain to see as they become leaders of their business sectors. Their performance outstrips competitors by several magnitudes and they are often regarded as having some magic ingredient – you may have heard your management team say ‘ha yes they are quite different to us as our challenge is unique’.  The bottom line is that Outside-In companies utilise a range of tools and techniques that improve alignment to the successful customer outcome and these approaches go way beyond the industrial/information age mind-set.

A new way of working

Outside-in approaches create a completely new reality that reshapes how we manage and organise work so much so that functional pyramidal structures become artefacts of the past. A senior manager who may have spent considerable time clambering to the top of these rigid monolithic structures is directly threatened by the shift to Outside-In and may be understandably reluctant to embrace a new order of business that completely changes most things you have ever known.

How can you embrace Outside-In?

The shift in mind-set is underpinned by method and new techniques (CEMMethod™) appropriate to process alignment for successful customer outcomes. Several organisations offer support, training and coaching towards the new order and include emergent technologies that enhance our ability to better organise work. Direct training is available through the BP Group (www.bpgroup.org) where people are encouraged to qualify as licensed BP Group Certified Process Professionals®.
Associated Licensed partners and companies offering consultancy and technology support can be reviewed at www.oibpm.com
 
Join the community
You can read more in the latest book ‘Outside-In. The secret of the successful 21st century companies’ at www.outsideinthesecret.com and join the global community through LinkedIn at http://bit.ly/joinbpgroup

Three part webinar OUTSIDE-IN, Discovery, Understanding and Implementation

This next few weeks sees a rush towards Outside In with several books in the pipeline from academics, researchers and practitioners. Both Forrester and Gartner join the fray next month following existing publications from Wharton, Harvard and Sloan Business schools.
Not to mention of course our very own Outside In – The Secret (published in 2010).

http://bit.ly/Outside-In_BPGroup

What is the fuss all about? Find out how you can embrace all that is Outside-In in this snappy, to the point webinar by yours truly 😉

>>>>> Please register for Outside In 101 – A three part programme <<<<<

http://bit.ly/Outside-In_BPGroup

Discovery – Understanding – Implementation

Part One: Discovery
What is Outside-In (OI)?
Why is OI the preferred choice for the 21st century leading companies?
How does OI fit with other process approaches?

Part Two: Understanding
If OI is so good why isn’t everyone doing it?
What are the direct benefits of OI?
Who is implementing OI and how does it compare to the Old Ways?

Part Three: Implementation
What can I do to implement OI?
How do I get started?
How do we take others on the journey?

After registering, you will receive a confirmation email containing information about joining the webinar.

http://bit.ly/Outside-In_BPGroup

___________________________________________________________________
Steve Towers | BPGroup.org | SVP & Founder | www.bpgroup.org
BP Group, New Bond House, 124 New Bond Street, London W1S 1DX
Offices in London – Houston – Denver – Bangalore – Sydney – Associates in 118 countries
Office: US: +1 303 800-0924 | UK: +44 20 3286 4248 | Fax: +44 20 7691 7664
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Latest Video: http://youtu.be/hjfDrrzjfuY
Recent visit to UK PM’s office: http://bit.ly/SteveJohnCharlesNo10

Outside-In at Apple strikes a chord

BP Group CPP Master® Arun Kumar (with noted technology innovators Gieom in India) comments:

Just saw the Apple Worldwide Developer Conference….and I am overwhelmed by iOS6 features on a phone. They have tied up with the likes of BMW, Honda, Jaguar, Audi to have a SIRI button in the next 12 months in their cars where traffic, weather, turn by turn navigation and Realtime Estimated time to arrive at a destination can be manipulated using voice on the iphone. They are calling it going from handsfree driving to Eyes free driving.
This wouldn’t have been possible if you don’t think outside in…..if you don’t make the process for the experience of the customers and not just for your capabilities. Many I talk to think the innovation is a gamble…..how frustrating when actually innovation can be achieved by looking at a process and thinking of creating an ecosystem with others to achieve that. But anyway, happy that I can relate to these innovations and think it’s just how you look at your processes and not some design room magic by einstein haired scientists. Thanks for the halo.
(Arun is third from the left)
And thank you Arun for the observation!

Coming to somewhere near you: 20 Cities on every continent through June, July and August 2012.

In May 2012 we passed the 20,000 accredited Certified Process ProfessionalsRsince 2006.
 
Limited offers in the month of June: http://www.bpgroup.org/certification-by-city.html
An internationally recognized program with proven track record of success – being run for 260 times in 84 cities with attendees from 95 countries, the program is developed based on the branded BP Group CEMMethodTMwhich aims to win the Triple Crown (simultaneous reductions in cost, growth in revenues and advances in Customer Service) with significant immediate quantifiable business results.
In May 2012 we passed the 20,000 accredited Certified Process ProfessionalsR since 2006.

Advance your life and business Outside-In

Limited offers in the month of June: http://www.bpgroup.org/certification-by-city.html