Showing posts with label Advisory. Show all posts
Showing posts with label Advisory. Show all posts

Tuesday, July 29, 2014

Customers Purchase Benefits, Not Products

Business organizations have core competency in certain areas and are more likely to have strong capabilities in those areas. Firms are also likely to look for outside consultants in areas where they do not have enough home grown talent and more likely to outsource capabilities such as IT in case of an internal gap. This article is a quick overview of some of the decision challenges faced by the firms while trying to decide what capabilities to outsource.

Businesses are facing a challenging landscape. The customer is connected and empowered. The customer can compare healthcare insurance plans at the click of a button. He or she can search for the best price for consumer goods online and order it online to have it delivered the same day. The customer is purely shopping for benefits while the firms are selling products/services to provide those benefits. Consumer needs have changed, since they are exposed to products from across the globe. A customer's access to information is unbound, thanks to internet. This has resulted in firms re-evaluating their business model to see if they are still serving the evolving customer needs. An insurance company offering high deductible plans with a wide coverage might no longer be relevant in a new target market. The new market demand, due to changing demographics, might be for lower deductibles with a smaller specialist network. An historically well-performing video game with MP3 song playing capabilities might no longer be relevant because of the availability of music on smartphones.

Under such scenarios, the firm has to re-think its business model and make key decisions about how best to leverage its existing capabilities to meet the new market demands. After the firm has decided to revamp its product/service to best meet the new consumer needs, it has to review its existing capabilities - human resource capabilities, IT capabilities, supplier capabilities etc. Because of the competitive landscape, the time to market for modified products/services has to be very short. Productivity of its employees becomes critical in order to achieve high speed to market. IT systems play a key role in increasing the productivity of a firm's employees. During the process of selecting a suitable IT product, the firms have to select a product that best compliments its employees’ skills. Not every "out of the shelf" product will meet the needs of the firms. Especially since the changing business needs require updated employee skills, it is rare for "off-the-shelf" products to meet the new needs of the firms exactly. The IT products needs to be customized to the needs of the firms. Under such a scenario, it is critical for the firms to engage with IT product & consulting companies that have worked with firms from various industries and effectively understand the changing needs of its clients. Firms such as IBM have worked with clients from various industries for a long time and collected extensive domain knowledge. This knowledge is helping IBM and other firms in its ecosystem to quickly develop products and solutions to effectively deal with the emerging challenges. IBM products such as IBM BPM 8. X (Business Process Manager), Cognos, ODM (Operations Decision Management) carry with them an history of experience with business clients with evolving needs. This experience has resulted in development of features that are applicable and adaptable to various business needs. E.g.: The business process design and integration capabilities are as adaptable to a retailers in-house legacy mainframe systems as they are adaptable to a newly on-boarded supplier’s web services. Cognos data analytics capabilities can “talk” to an insurance firm’s legacy data source systems as well as capture real time data generated by the process.

When the time to market is so short, it might be difficult for firms to build the IT capabilities in-house. Firms are more likely to benefit from outsourcing IT development in areas where the internal employees have not yet matured at. Besides, the key upside of outsourcing an IT skill is quick development of IT applications and helping in the final goal of delivering a firms product/ service to market faster. Before making the decision to choose an IT consulting firm, the business firm has to evaluate the client portfolio of the IT consulting firm, it's nature of projects implemented historically and breadth of domain expertise. IT consulting firms that have worked with key players in a particular industry have better exposure to industry challenges. Consultants that have a shorter learning curve will achieve higher productivity while helping to design and build an suitable IT application.

Bottom Line: When businesses choose the right, flexible IT application and partner with consultants with right skills, they increase their chances of effectively catering the evolving needs of their customers.


N.R. Vijay is a Solution Architect in the Business Process Management division of Prolifics. He has over 10 years of consulting experience across domains such as Retail, Healthcare and Banking. Specializing in technology, management concepts and enterprise strategy, he is focused on change management and process improvement initiatives. He co-authored a whitepaper titled "Improving Customer Loyalty through Business Process Optimization and Advanced Business Analytics"

Monday, June 23, 2014

How to Conduct a Quality Assessment Under a Short Timeframe With Limited Resources

As part of its service offering, Prolifics provides clients (or prospective clients) an assessment of their current quality processes. Recently, Prolifics engineers were requested to go onsite at a client location to render such an assessment of a complex, multi-tier, application. However, the client would only agree to a very short length of time for the assessment.  Prolifics accepted this challenge – knowing that it would be a demanding project. This brief article describes, at a high level, the approach taken, the constraints that we worked under and the end result.

Rapid Assessment Approach
For such an ambitious project, every hour of time is important. Thus, it is indispensable to initiate the project with remote outreach to the client, even prior to going onsite. Gather as much essential information as possible. This advance work can take the form of reviewing any existing documentation about the client and the systems under test. Once the early information is reviewed, it can in turn prompt you for additional items to request, again in advance of going onsite, or during that first day or two. For the assessment at this client, we reviewed relevant Prolifics correspondence and other documentation between the client and the quality practice. There was recent documentation from an initial round of discussions which included both the Head of the Testing Practice and the Director. We also held pre-assessment conference call discussions with the Sales team, who provided helpful insights into the client organization.

We then requested the client to provide an initial set of test plan documents and test cases. We also requested high level information on system architecture. Every day of “front loading” the process advances the project to the engineer’s advantage. Thus, early on in the project we obtained a basic sense of how the client’s QA team conducted testing work within their test cycle.

Also, to address items which could constrain us, we made requests for client network access and test case and defect tracking repositories.  Both these items (network access and test case/defect tracking system access) are typically “long lead time” items which can further constrain the assessment schedule. Therefore it is important to request these in advance of going onsite.

The day before our client visit, we developed a preliminary project plan, together with milestones and dates that we wanted to achieve for the assessment.

Selecting a Methodology:
Various options are available for assessment methods. It is important to choose a methodology which provides as much quantitative and qualitative measurement as possible, in the time allotted. So, the assessment method must do the following:

  • The methodology must be comprehensive enough to cover testing processes both in breadth and in depth.
  • It must be flexible in order to adapt to the constraints of limited time and resources.  
  • It needs to be sufficiently objective such that it has credibility with the client.

With the Practice Head’s guidance, we utilized a Test Process Improvement (TPI) methodology to assess this client. The Prolifics version of TPI measures up to twenty (20) dimensions of testing effectiveness. In the brief two weeks that we had for this assessment, we had to select which of those twenty dimensions to assess. It came down to a combination of the most important dimensions of the testing process and the most available to measure.

Conducting the Assessment
Knowing that we had just two weeks for the assessment, we placed much energy into “front loading” our activities during the first week. This involved meeting the key managers and leaders of the client.  We scheduled a round of one-on-one interviews with those individuals.  It is important to plan these interviews in advance of the actual meetings; plan the interview questions and carefully document the answers. Our interviewees were:  the Business Owner, QA Manager, QA Team Leads, Development Manager and Leads, Project Manager, Business Analysts and test automation staff.

In order to fully carry out our assessment, we made follow-up requests for information we had not yet received, plus requested system requirements, specifications and documentation. Various of these items were identified as useful during those interviews and meetings.

Data Gathering and Analysis
Reviewing test artifacts (Test Strategies, Test Plans, Test Cases) is a natural place to look and evaluate.  However, system requirements provide the initial “blueprint” for understanding the application under test. While clients may at first be reluctant to disclose requirements or design documents, it is essential to review a sufficient sample of requirements in order to comprehend what the application is intended to do. Then, proceed to interpret the Test Plans, cases, etc. in light of the requirements.

From there, defect reports provide the essential, interlocking pieces of information. Though much can be gleaned from reviewing defect reports, a more complete interpretation is possible when requirements, test strategies, plans and test cases are first considered.  Then, defect reports can be assessed fully illuminated.

Having requirements and artifacts, we began preliminary analysis and compilation of the data.  Day after day, we added incremental data, performed further analysis and began to identify deficiencies, patterns and gaps in the quality processes.  For areas of significant concern, we continued to gather even more data to strengthen and validate our analysis.

Frequent Communication
We decided from the outset to mandate frequent communications among the assessment team. This included the engineers onsite, our project manager, the practice director, sales team and project manager.  At designated intervals, and on as as-needed basis, we also included the client executive.
Our communication included daily conference calls between the above members, followed by daily email meeting minutes mailed out to the team, plus certain Prolifics executives. There were other communications (follow-up meetings, email, etc.) as needed to keep the assessment moving forward and deal with impediments. This all had the effect of transparency, delineating our progress and identifying potential problems. Trust among team members grew and helped this ambitious schedule proceed with less stress.

Interim Progress Briefing
At the end of week one, we delivered an abbreviated status presentation to the client. This helped us to clarify that we were on the correct path for this assessment. If there were areas to go deeper, or areas that did not require much additional data gathering, this briefing helped to clarify matters. It also provided the opportunity to deliver preliminary findings that our analysis was surfacing.
Although our presentation was intentionally limited in content, it did serve to firm up both our (Prolifics) and the clients sense that the assessment was proceeding in the correct direction and making meaningful progress.

It is important that this particular briefing be a formal, scheduled milestone event. This gives the assessment team a midpoint goal to achieve. The client also has the opportunity to receive preliminary results, ask questions and offer suggestions and guidance. This interim briefing surfaced no surprises.  We confirmed that we were on the right track and that progress was being made. Our client indicated they were looking forward to the final report. We took this as a good sign.

The Second Week
After the interim briefing, we exerted ourselves to gather additional information. We performed second round interviews with client staff where needed. Then we went deeper into client test artifacts and the TestWare systems. Reviewing the way quality information is structured and organized and comparing that to release requirements is very useful aspect of an Assessment. Patterns became clearer, as did any gaps or deficiencies.

While keeping good notes and other documentation is needed throughout the assessment, it is vital to begin to outline the assessment report at the earliest possible time. Ideally, you would want to start the report outline as the data begin to form facts – then as facts emerge into findings.

Then, we circulated drafts of the assessment as early as practical within the quality practice.  As is human nature, much of the feedback on the draft assessment report arrived late – bumping right up against the deadline. Fortunately, we had incorporated many early comments and suggestions in previously. So we were able to accommodate significant last day revisions.

Delivering the Assessment
The act of delivering an assessment report to the client does not simply occur at the conclusion of the project.  It is a cumulative effort that actually begins days before.  An assessment is like a “report card” to the client.  More often than not, it will convey information that is critical of their processes.  Providing negative information must be done with sensitivity.  Working under ambitious deadlines can be stressful to all involved.  Adding negative findings into the mix can lead to unpredictable results.  Therefore, these dynamics must be anticipated and managed.

As described earlier, we built in frequent, open communication within the project. We approached the assessment in a balanced and fair way with all of those involved.  Client stakeholders were hearing about our day to day activities from their staff; it is essential that feedback be positive. Objectivity is also important. Thus, we presented positive findings along with critical, or negative, findings. All of this fosters trust.

The final presentation culminated with an onscreen presentation for the client. \ As the Assessment report was lengthy, was delivered the presentation as an executive briefing, with a summary up-front. The client requested a preview of the following detailed section, which we were happy to provide. Thereupon, the client asked questions and our answers were crisp and to the point. This laid the groundwork for the client to read the entire presentation.

Our client recognized the hard work that went into a very short two week engagement. \ It was evident that our approach was objective and that the results had integrity.

To learn more about Prolifics' testing practice, visit our website.

Dex Malone is a Delivery Manager at Prolifics specializing in Independent Validation and Verification (IV&V). With over twenty-five years’ experience, Dex specializes in large, complex IT systems.  He has worked in Quality Engineering leadership roles in software development across various industries.  These include regulated environments in healthcare, telecommunications, general business, banking and finance, across both public and private sectors.  His interests are in software security and privacy.  When not in front of a computer, he can be found with family, in the mountains or at the shore.  


Thursday, June 12, 2014

Prolifics Employee Showcase: Alan Shemelya, VP of Healthcare Business Development

Alan Shemelya is the Vice President of Healthcare Business Development and is responsible for growing Prolifics’ healthcare services and solutions for customers around the world. With more than 30 years of experience and thought leadership in the Healthcare industry, Alan has accomplished an impressive list of milestones over the course of his career and is passionate about not only helping businesses achieve success but also making significant strides in patient care.

Commitment to Healthcare
Alan’s passion for the healthcare industry began as a young child after a trip to the hospital. His interest grew in college when he wrote a thesis on healthcare finance. During this project, he realized that hospitals were manually driven in just about everything they did on a daily basis and were operating 10 years behind. From registration to billing, automated processes simply did not exist.

It was at this time that Alan recognized an opportunity in the industry. Throughout his career, his work has always been driven by a consistent mission: finding ways to improve the care of sick children.

The Road to Prolifics
Alan joined the Prolifics team in March 2014. Over his career, he has worked with a number of leading healthcare information technology (HIT) and consulting companies in Sales, Product Development, Marketing and Implementation of EMR, Revenue Cycle and ERP solutions. Prior to joining Prolifics, Alan provided his leadership and expertise at HCA/Parallon, Xerox/ACS, Allscripts and McKesson.

Alan is driven by his motivation to provide innovative IT solutions for the provider and payer markets, specializing in improving patient, provider and payer communications, business process enablement, and outcomes. With Alan’s expertise in the healthcare industry, experts will have the experience, skills and knowledge necessary to deliver in this highly complex industry, aligning innovative and proven solutions to solve clients’ business goals.

Innovation & Thought Leadership
Alan has written articles on the redesign of business processes and advancement in technologies that enable the automation of workflow decisions impacting both providers and payers. He has been a featured speaker with the Southern Healthcare Administrative Regional Process (SHARP) and has been on the National Speakers List for the Healthcare Financial Management Association (HFMA). Below is a list of articles that Alan has published throughout his career.

HFMA ANI, 2009
HFMA Georgia Meeting, 2010
HFMA Patient Friendly Billing – Accessibility of Data

The Future is Bright
When asked, Alan selected the following three words to describe Prolifics: agility, intelligence, responsibility. He finds these characteristics as key drivers for success in building innovative healthcare IT solutions.

A Recent Journey
Alan recently participated in the AIDS/LifeCycle 2014 bike ride. This is a fully supported, 7-day bike ride from San Francisco to Los Angeles designed to raise money and awareness in the fight against HIV/AIDS. This event delivers a life-changing experience for thousands of participants from all backgrounds and fitness levels united by a common desire to do something heroic. Prolifics proudly supports Alan and this worthwhile cause!



Alan Shemelya is the Vice President of Healthcare Business Development at Prolifics. He is responsible for growing Prolifics' healthcare services and solutions for customers around the world. Alan has 30 years of experience and thought leadership in the Healthcare industry, specializing in Sales, Product Development, Marketing and Implementation of EMR, Revenue Cycle and ERP solutions. As an industry expert in the healthcare financial arena, Alan has written articles on the redesign of business processes and advancement in technologies that enable the automation of workflow decisions impacting both providers and payers. He has been a featured speaker with the Southern Healthcare Administrative Regional Process (SHARP) and has been on the National Speakers List for the Healthcare Financial Management Association (HFMA).


Thursday, June 5, 2014

Measuring ROI from Business Process Management Initiatives

Executive Summary:
Business process management projects are riddled with implementation challenges. Differing expectations on process performance and lack of communication between IT and business users, delays in “operationalizing” BPM applications, process design that changes the "we have always done it this way" style of operations are some of the main contributors to these challenges. The delays in implementing new applications make it difficult to correctly measure the return on investment (ROI). This article explores some of the tangible ways in which the ROI can be correctly measured after a BPM project implementation.

Why the delay?
During the requirements phase, the business process (operations) users might have different expectations from an automated process. In most of the scenarios, the operations users tend to be influenced by the legacy systems while describing the process requirements. After the IT team develops the automated process application eliminating inefficiencies, differences crop up. This problem is compounded if the process "playback" methodology is not adopted while developing the application. The tug of war between the IT and operations leads to delays in implementing the process application, hence delaying the ROI and increasing the project costs. A lack of executive sponsorship for championing the process improvement cause among the business users is also one of the chief reasons that delays adoption of the new application. A process performance benchmark set before an IT initiative is undertaken would solve all these problems.

How to set process benchmarks?
The first step is to achieve process maturity within the organization. This need not wait till a BPM initiative(s) is identified. A comprehensive process inventory capturing the existing processes within an organization gives a good view to plan the process benchmarking. If a Big Bang approach to process inventory is not possible, the process assessment can be limited to a business unit or function. It can be started with value map or capability map or organization chart.  A combination of top down and bottom up approach to create process awareness should be adopted. Business users should be enlisted to help identify the critical process.

Steps to set process benchmarks:

Identify objectives for each area for next few years:

  • What are the processes that currently exist in these areas? Who owns them?
  • Are these processes helping to achieve the objective?
  • What is the desired state for the processes to achieve the objectives?
  • How do you measure if processes are helping you achieve the objectives?
  • Which business units are involved in the business process?
  • What are the key areas impacted by the business process?

Define KPI & SLAs:
  • Is the goal to reduce time or achieve agility or improve visibility? or all of them?
  • What should be the end to end cycle time of the business process?
  • Do the current SLA's apply to the new objectives?
  • How do my SLA's compare against my competitors (if possible to compare)?
  • Do the current processes create enough and relevant data for me to measure my business performance? What should I do to create digital data?
Set Employee Measures:
  • What is the best utilization of my full time employees (FTE's) within these units? 
  • Are the processes too much people dependent?
  • What will happen to my operations if my employees quit?
  • What type of employee skill sets do I need in the next few years? Do these processes support working with such skill sets?
Set Revenue & Cost Measures:
  • For revenue impacting processes, how do these processes measure up against the revenue targets for next quarter/month/year?
  • For customer impacting process, what do the customer satisfaction ratings say? What are the desired ratings?
  • What are my cost savings targets for next quarter/month/year?
These are some of the ideas for setting up process benchmarks. When these benchmarks are set up proactively, it keeps the measures independent of any BPM/Automation initiatives and provides an objective measure for ROI on the BPM/Automation initiatives.

Setting ROI Measures:
Once the process benchmarking has been set, it is a good time to identify BPM and other digital/automation initiatives. Select a critical process improvement initiative that can be implemented in around 4 months to show value and achieve a quick win. In order to regularly measure the progress of the process initiative, the benchmark targets should be broken down into multiple, phased targets. 
E.g.: 
  • After iteration one, the process cycle time should be reduced by X hours
  • After iteration two, the FTE utilization should only be 60% of process work
  • After iteration one, work assignment should be dynamic and flexible. 
The ROI should be mapped against these benchmarks. The benchmarks should be assigned a $$ value, the expected time to achieve the benchmark taken into account and discount factor assigned to this $$ value. The increase in revenue $$ and cost savings $$ should be added to create the complete ROI figures.

Measuring ROI:
True continuous improvement is achieved in an iterative manner:

ROI Measurement Cycle
Compare the process/rules/IT performance against benchmarks regularly
Implement Data Analytics tools to measure business data impacted by business processes
Compare the process KPIs with captured data
Perform a regression, is there a correlation between process KPIs and my revenue/cost drivers?
What KPI measures do you have to meet/improve to achieve the desired objective?
Identify process areas that can improve these KPIs
Get back to process improvement

The ROI should be measured against a minimum of 3 process cycles (around 2 years):

ROI Measurement in Phases
Project investment (-$$) + (Iteration 1 ROI/ (1+IRR) + (Iteration 2 ROI/ (1+ IRR)2) + (Iteration 3 ROI/ (1+ IRR3)3) = 0

Closing Comments:
Setting process benchmarks builds accountability into BPM projects. Setting the correct expectations and making budget decisions based on a ROI calendar helps in reducing the delays in implementing BPM projects and to add true value to the business.

To learn more about Prolifics' BPM solutions, visit our website.


N.R. Vijay is a Solution Architect in the Business Process Management division of Prolifics. He has over 10 years of consulting experience across domains such as Retail, Healthcare and Banking. Specializing in technology, management concepts and enterprise strategy, he is focused on change management and process improvement initiatives. He co-authored a whitepaper titled "Improving Customer Loyalty through Business Process Optimization and Advanced Business Analytics"



Monday, April 21, 2014

The Five “Rights” of Business Process Management

Recently, while working with a client in the medical field, I was made aware of an interesting
adage used by those in the nursing profession. It’s known as The Five “Rights” of Patient Care
and is embraced by those responsible for ensuring that accurate and appropriate care is given to
patients. A mistake in their world could result in a life threatening situation. It is critical, therefore,
that mistakes are avoided. The Five “Rights” of Patient Care are:

  • Right Patient: Make certain you treat the right person. 
  • Right Drug: Check that you provide the right medication to the right person. 
  • Right Dose: Dispense the right amount of the right medication to the right person. 
  • Right Route: Ensure the medication is given the right way (e.g., orally, topically, intravenously). 
  • Right Time: If the medication is going to make the person go to sleep, it is probably best to give it to them at bedtime. 

The power of this adage is in its simplicity and made me think again about that fine book by Atul
Gawande, where he brings into focus the importance of checklists. The Five “Rights” is indeed a
checklist and one that, with only 5 points, is easy to commit to memory and easy to apply in
practice. When followed, it would be very difficult to screw something up.

So, I thought how one might take this simple patient care checklist and adapt it for the BPM
profession…The Five “Rights” of Business Process Management, since “screwing things up” is
alarmingly commonplace in the world of process improvement.

We approach new initiatives with all the best intentions but too often fail to execute, or execute
then fail to show any real, verifiable benefits (ROI) from our work. Too often, businesses fall
victim to poorly planned, poorly executed process improvement efforts. They are left with less
money and greater frustrations when yet another attempt to repair their troubled, inefficient
processes has been unsuccessful. What then? Recommending reorganization or maybe buying
some new technologies are options. Those usually take the heat off for a while. Or, we could
focus on the basics with five simple checks. Let’s see what the Five “Rights” of Business Process Management might look like.

Right Process 

Obviously, we have to consider process; we’re process professionals after all. That means Right
number one would be “Right Process.” For any number of reasons, politics, squeaky wheel, easy
to work with users, the wrong process is often targeted to be fixed. We need to always ask the
question, “Is this process really the place we should be focusing our efforts?” Consider the
medical scenario a bit further. When a patient comes in to the emergency room complaining of
chest pains and a sore ankle, where does the medical staff focus their efforts? Most likely, they’ll
make certain the patient is not having a heart attack before tending to the ankle, even if the
patient may be complaining more loudly about the ankle.

It’s amazing how often process teams go to work on some back office process improvement
because they have support from departmental management or it’s just easier, while their critical
customer-facing processes are in cardiac arrest!

Another thing the emergency room staff does is to very quickly hook the patient up to monitors,
checking vital signs, and so on. They do this for the obvious reason that without current
information – metrics, they can’t possibly make an intelligent decision as to what course of
treatment is most appropriate.

Here again, we usually fail miserably in the “process” emergency room because we simply do not spend enough time or effort measuring and monitoring performance before we begin our
treatment. The result of this haste is often the death of the project, death of the process, or, in
extreme cases, death of the business.

Selection of the right process, especially in an organization where process thinking is not the
norm, is absolutely critical. It takes some intelligence and research to know what the “right” first
process is. Take time for some business triage before determining what processes are in need of treatment, which processes are likely to yield business value if treated, and which ones have the
greatest chance of recovery from the treatment. There’s little point in saving a process that really
should be left to die in the first place, or just left on life support. If a process does not add
tangible business value, don’t waste your time improving it.

Right Solution 

There are usually multiple ways to treat business issues. Too often, we take the easy route and
throw technology at the problem. If we again liken this to patient care, we have Right number
two, “Right Solution.” More and more, health care providers are pointing us toward natural
remedies; exercise and diet vs. medication, for example. If we consider how much business
value can be realized simply by modifying how we do what we do (i.e., true process
improvement), we may be able to either avoid investments in new technology or better leverage
the technology we already have.

When technology is necessary, we should be certain how it will be of benefit. If a healthcare
provider gave us a pill and said, “Not really sure what impact this is going to have on your
condition, but let’s give it a go,” it wouldn't instill much confidence. We want the provider to tell us
what we can expect.

Yet process and technology professionals will plead their cases for new technology not really
knowing how or if it will address the business problems it is purported to solve.

Applying technology to a business model with limited understanding of what can be expected is
simply unprofessional and should not be done. Granted, we can’t always know exactly how a
certain technology will perform in different environments, but we should be able to predict with a
high degree of confidence the business value we expect to realize. And if we are monitoring
performance as we should, we’ll know very early if we are realizing the desired results. Process
teams, uncertain of outcomes quite possibly are looking at the wrong solution, or are lacking the
skills and analysis needed before prescribing an expensive and perhaps unnecessary treatment.

Right Scope 

Scope creep is nothing new to those of us who have come from the IT world. Software
development projects routinely struggle with scope management. Scope creep is expensive, time
consuming, and increases the risk of project failure. Right number three is “Right Scope.”

IT projects usually creep up from added requirements and functionality, resulting in further
analysis and more lines of code to be written and tested. Business process projects can creep
for the same reasons, but requirements and functionality can be dramatically broader. Where an
IT project may need to add a field to a screen, or code some additional validation checks, a
process team may be directed to look at an additional line of business, or include a supply chain
with several business partners, or document process flows for branch operations at multiple
locations. These kinds of change requests can add months of effort to a project and cast the
team into a downward spiral of endless analysis and process modeling.

Prescribing the right dosage, right scope, for an improvement effort can mean the difference
between success and failure. Taking 2 antibiotic pills twice daily can kill an infection in 7 days.
Taking 4 antibiotics a day won’t kill the infection twice as fast. Teams that try to take on a
process that is too large will most likely become frustrated, lose management support, and fail to
deliver much, if any, value to the business.

Manage scope and don’t attempt a radical, cross-enterprise treatment unless it is absolutely
necessary. Smaller scope efforts can show value quickly and are more likely to be well received.
Process improvement will be recognized as a credible approach to treating business problems.

Right Message 

Process improvement is about change. People, in general, don’t like change. That’s just the way
it is. As process professionals, we need to adopt a bedside manner that will communicate
confidence and assurance and set people at ease with change. We need the “Right Message.”

How we position, market, and communicate the message of change will, in large measure,
determine how successful we are in effecting change. Do not take shortcuts or underestimate the effort necessary to develop a solid message.

Change and culture go hand in glove. Cultural impact must be assessed as part of process
improvement. Processes cannot mature independent of cultural change. Crafting the right
message means understanding the context in which that message will be received. Is the culture
one of rapid growth and frequent change? Has the organization been around for decades,
continuing to do things pretty much the way they have always done them? Does management
support and embrace change? Are people rewarded for creative thinking? Knowing the answers
to questions like these will help guide what messages need to be crafted and shared.

Don’t underestimate the need to market new ideas and concepts. Since change is hard and
makes people uncomfortable, we need to share information about new ideas more than just once
or twice via email. We need to allow people time to get comfortable with new ideas, to allay their
fears, and market the value of the change. Everyone needs to know “What’s in it for me?” We
may watch TV commercials over and again and still not be able name the product being sold.
Start marketing change well before implementation, crafting messages for both global audiences
and individual, one-on-one, water cooler conversations. Every change needs an “elevator pitch.”
If we want people to embrace change, we need to equip them with the appropriate information
and right message for them to do so.

Right Time 

Timing can be a friend or foe when it comes to process change. Consider all the activities that
are taking place in your organization at any given point in time; year end closings, end-of-quarter
sales pushes for quotas, reorganizations, moves to new locations, launching new products, the
list goes on.

As with understanding culture, it is important to understand what activities or events are occurring
in an organization that may be captivating everyone’s attention. If I’m being asked to deliver a
significant month end report, or push to close a pending deal, now might not be the right time to
hit me up with process change, no matter how wonderful that change might be. I’m simply not in
a position or in the right frame of mind to deal with it.

We need to know our audience, know what is going on in their world, and be empathetic to their
situations. Great ideas introduced at the wrong time can quickly become really bad ideas. Our
good work could be all for naught. We may not get another chance to introduce it again because
the idea, the process change, is now tainted. More than once I’ve heard it said, “No, we tried that
once before and it didn’t work. We’re not going to do that again.” In reality, it wasn’t a bad idea
at all, it was just bad timing.

Conclusion 

No matter how long we have worked in a given profession, we can always benefit from refocusing on the basics to improve our performance by following some simple checks. Am I targeting the
right process, with the right solution? Is my scope too big -- Will it take too long to succeed? Is
my message on target and informative? Is this really the right time, or should I wait until
conditions are more favorable?

  • Right Process  
  • Right Solution 
  • Right Scope 
  • Right Message 
  • Right Time 


Next week, Prolifics will be a Platinum sponsor at IBM Impact 2014, where our team will be showcasing our BPM solutions and recent successes. If you are planning to attend IBM Impact, be sure to visit Prolifics or schedule a one-on-one meeting with one of our experts.

To learn more about Prolifics' BPM solutions, visit www.prolifics.com or connect with Howard Webb:




Howard Webb is the BPM Advisory Services Director at Prolifics. Howard and his team provides consulting and guidance to clients in transitioning to highly efficient Process Managed business models, and equips them for success in their BPM initiatives. For over 25 years he has been a consultant, trainer, facilitator, and speaker on the topics of Business Process Management (BPM), data architecture, and project management. He founded the Midwest BPM Users Group and has published articles on BPM and enterprise architecture. Prior to coming to Prolifics, Howard was founder and partner of Bizappia, a consulting and services firm focused on business agility, performance and innovation. Prior to Bizappia, he was a Sr. BPM Technical Specialist with IBM.


**this article originally appeared on www.bptrends.com.

Tuesday, April 8, 2014

BPM, Rules and Analytics: A Business Trilogy

It’s an exciting time to be a business process professional. The management discipline of BPM is mature, process modeling standards are stable and the technologies are at a point that allows us to provide the kinds of process innovation and agility that we have long asserted, but were unable to easily deliver.

We can now look at broadening our horizons beyond process workflow and the monitoring of basic operational metrics. Today’s process professionals can deliver incredible business solutions that include, not only process workflow, but also the powerful execution and management of business rules, broader, more complex business decisions and advanced business analytics.

This business ‘Trilogy’ of capabilities (Process, Decisions, Analytics) is changing the landscape and makeup of business solutions, business process design and the ability of organizations to rapidly change, adapt and respond to the volatile nature of today’s global market.

Not only are these capabilities available to the process professional, they are essential. Process efficiency alone is no longer sufficient to ensure business success. Consider the history of process from the early 1900’s and the work of Frederick Taylor around process standardization and Henry Ford’s groundbreaking assembly line production automation. And moving into the 1980’s we had total quality management, Six-Sigma and Dr. Michael Hammer’s business process reengineering.

These initiatives, revolutionary in their time, were focused essentially on improving process efficiency. In today’s ‘customer-centric’ world where the customer has greater power than ever before with mobility, the cloud and ubiquitous Internet access at their fingertips, process efficiency alone is simply not enough.

We must today look at creating, in IBM’s terminology, ‘Smarter Processes’. These 21st century processes must certainly be streamlined and efficient, almost a given, and be able to orchestrate process workflow across systems and data sources enterprise wide. However, modern business solutions cannot stop there.

Any process improvement initiative must consider the following:

  • How process execution can be dynamically changed through business rules management
  • How business decisions can be made both independent of business processes and in support of business process workflow
  • How processes can support customer’s mobility demands
  • How big data and social media can be leveraged to not only respond to customer demands, but begin to predict future customer behavior

All this means we must go well beyond traditional business process improvement in developing business solutions. We’ve touched on process improvement to some degree.  Now let’s examine the other components of a business trilogy: Decisions and Analytics.

Business Decisions
A business decision is a collection of business rules, encapsulated to ‘hide’ the complexity of that decision from the user or recipient of that decision. A user could be a business process, system, web portal or other medium that may need an answer, a decision, without needing to understand the complexity that underlies that decision.

Business decisions and the practice of Business Decision Management (BDM), can dramatically simplify and change how we go about business process improvement.  Not only can BDM simplify business processes and process models, but also enable greater agility and flexibility than ever before.

It is common process modeling practice to extract business rules from processes, leaving only simple decision point that determine navigation, or which path to take through the process (if ‘Gold Customer’ go one direction, if ‘Platinum Customer’ go another).

The process needs only to know what type of customer it is.  The complex business rules that determine the customer type (Gold vs. Platinum), can be modeled in a Business Decision.  The process then can query the business decision, much like a business service (SOA) to get the answer.

We have been modeling business processes for some time and the standard Business Process Modeling Notation (BPMN) is quite mature and tools like IBM’s BlueworksLive support and enforce the standard.

Decision modeling is an emerging discipline also with standards, just not yet as mature as BPMN. A decision model provides a means of capturing very detailed business rules that support a business decision, and presents them in a standard model that can be communicated, implemented and managed. These business decisions can be shared, reused and leveraged across multiple business processes, systems and business scenarios.

Business processes become very simple indeed and extremely stable. Processes only need to be changed if a business model changes…like offering a new service to customers. The dynamicity of the business is managed outside the process in business rules and higher-level business decisions. Rules can change dynamically with little or no impact on the business processes that use them.

Advanced Analytics
With the onslaught of information, big data, from a myriad of sources, it is critical that organizations consider how that information will be captured, analyzed and leveraged to both gain a greater understanding of their customers and improve their customers experience.

Analytics can be grouped into three categories; Descriptive, Prescriptive and Predictive. Each has a specific focus and purpose.

Descriptive
Perhaps the most common and familiar, descriptive analytics focuses on real-time, operational metrics associated with, for example, process activity monitoring. Descriptive analytics are typically displayed on dashboards, operational reports and scorecards providing immediate insights into business performance.

Prescriptive
Prescriptive analytics takes a deeper perspective of data to uncover patterns and trends.  This analysis helps organizations gain a better understanding of customer buying patterns and habits focusing on historical information.  Prescriptive analytics helps to answer the question of why customers do what they do.

Predictive
Taking a more forward thinking perspective, Predictive analytics strives to provide insights and guidance into what an organization should be doing in the future. This predictive or what-if analysis helps support future planning and resource allocation for what may be required or demanded by customers or the competition.

The Trilogy
Process consistency, agile decision and rules management and analysis of critical business data are the three characteristics of a modern, agile and dynamic organization. Process management alone is no longer sufficient. Business decisions are becoming more complex and data intensive.

Decision Management is the essential element to reduce process complexity and enable the ability to rapidly adapt to a changing landscape driven by customer demand, competition and regulatory pressures.

Likewise, advanced analytics provide the necessary visibility into historical, current and potential future business operations. This visibility coupled with efficient, well orchestrated business processes and state of the art Decision Management will be a powerful advantage for any enterprise that wishes to remain competitive in the age of big data, mobility, cloud, and proliferation of social media.

Attending IBM Impact?
Prolifics will be taking a deeper dive into this topic at IBM Impact 2014. Ryan Trollip, Decision Management Practice Director at Prolifics, has been selected to host a conference session that is not to be missed!

Session Number: BDL-3320
Date/Time: Mon, Apr 28; 12:00 pm - 12:30 pm
Location: EXPO Theater





Howard Webb is a Director of BPM Advisory Services at Prolifics. Howard and his team provides consulting and guidance to clients in transitioning to highly efficient Process Managed business models, and equips them for success in their BPM initiatives. For over 25 years he has been a consultant, trainer, facilitator, and speaker on the topics of Business Process Management (BPM), data architecture, and project management.  He founded the Midwest BPM Users Group and has published articles on BPM and enterprise architecture.  Prior to coming to Prolifics Howard was founder and partner of Bizappia, a consulting and services firm focused on business agility, performance and innovation.  Prior to Bizappia, he was a Sr. BPM Technical Specialist with IBM.

Wednesday, February 12, 2014

The Future of Healthcare: A Roadmap to Overcoming IT Challenges in a Changing Regulatory Landscape

Executive Summary:
Business organizations in a variety of industries face hardships and pain points when faced with a change. It’s especially hard when it’s a forced change through government regulations. The Affordable Care Act (ACA) presents one such challenge to organizations in the healthcare sector. This blog entry sheds light on some of the key challenges faced by healthcare payers while trying to conform to the ACA regulations and a few effective ways of dealing with them.

Affordable Care Act (ACA) - The ACA or the healthcare reform act introduces a few regulations that impact the healthcare providers (health insurers) such as:
  • Ability to accept group and individual enrollment information from a state or a federal insurance exchange website (without the insurers having the authority to reject any of these groups or individuals)
  • Cap on the percentage of premium amount that can be spent on advertising and administrative tasks
  • Expanded Medicaid eligibility – more consumers (up to 133% of poverty level) eligible for Medicaid
  • Reduced deductibility caps and new tax on healthcare payers depending on their market share

Challenges to Healthcare Payers - These regulations present quite a few challenges to the healthcare payers:
  • Need to define health plans for the state or federal exchange that can reduce costs to an optimum level, since the payers can no longer pre-screen the enrollees
  • Need to reduce turnaround time for setting up customer accounts
  • Ability to deal with increased volume of individual and small business customers
  • Keep their product networks flexible to deal with competition and sudden increase in costs
  • Continuously update their business rules related to enrollment, benefits packing, provider contracts, provider networks, provider demographics, reimbursement


Pain Points in Facing These Challenges - Clients face significant pain points in facing these challenges:
  • A combination of manual and system processes that present a lack of visibility & control
  • Legacy systems that are not flexible to adopt to the new changes
  • Many business rules that are currently enforced manually or distributed across multiple systems
  • Lack of coordination among the different functions within an enterprise

Impact of Failure to Deal with Challenges - If the healthcare payers fail in their attempt to effectively deal with these challenges they could face a few consequences:
  • Loss of market share due to long turnaround time for insurance and contract enrollment
  • Loss of revenue due to cost ineffective networks
  • Government fines imposed due to failure to meet the regulations

Effectively Dealing with Challenges – The healthcare payers can follow a few steps proactively to be better prepared to deal with current as well as future regulatory changes:
  • Identify process owners, map their current end-to-end processes across the enterprise, clearly map functional hand offs within processes, collect Key Performance Metrics (KPI), defineroles and responsibilities
  • Harvest existing business rules that are manually enforced and those that are embedded across systems
  • Analyze current state processes to identify - redundant activities, scope for automation, patterns across process and consolidate them into a single process
  • Create future state processes that are optimized by consolidating roles, eliminating bottlenecks
  • Establish clear expectations on the process hand off between functional units across enterprise
  • Identify and implement technology such as IBM BPM (Business Process Manager) to automate “non-value” adding manual activities, integrate source systems with process via web services, manage the workflows and gain visibility into the process (e.g.: Supervisor having the ability to view the status of workflow tasks assigned to their team)
  • Consolidate and centralize business rules into a single system by utilizing a technology such as IBM ODM (Operational Decision Management) and automate the interaction between BPM enabled process and ODM business rules
  • Empower the business users to directly maintain business rules in ODM and hence reducing the downtime due to IT maintenance
  • Introduce data analytics software such as IBM Cognos to collect customer impacting data such as claims settlement time, customer issue resolution, time to market for new plans etc., and measure the ROI from process improvements in terms of data 
  • Continuously monitor the process metrics and update the automated process. A BPM and ODM enabled business process provides the flexibility needed to continuously deal with changes




Conclusion:
By proactively adopting an automated process and rules driven approach, Healthcare payers can build flexibility into their business critical processes. Achieving visibility and control of their processes will provide them the ability to deal with the pain points resulting from change effectively.





N.R. Vijay is a Solution Architect in the Business Process Management division of Prolifics. He has over 10 years of consulting experience across domains such as Retail, Healthcare and Banking. Specializing in technology, management concepts and enterprise strategy, he is focused on change management and process improvement initiatives. He co-authored a whitepaper titled "Improving Customer Loyalty through Business Process Optimization and Advanced Business Analytics" - http://www.prolifics.com/customer-loyalty-bpm-analytics.htm.



Wednesday, September 25, 2013

Session Replay: Estimating your Process Projects presented at FSOkx BPM Forum

Earlier this month, Prolifics' Matt Yeager and Anant Gupta hosted a session at the FSOkx 4th Annual Business Process Management and Technology Innovation Forum. The presentation focused on how business leaders can reduce the guesswork associated with the estimation process by considering the following questions:
  • What is it that you are estimating?
  • How big is the thing you are estimating?
  • What baselines are you using for your estimates?
  • Should you be estimating top down, bottom up or somewhere in between?
  • How do your estimates tie to your project plan?
  • Do your estimates reflect ROI and business value?
If you missed the forum, you can catch a replay of the presentation here!

Prolifics Session: Estimating your Process Projects


Interested in taking a deeper dive? Connect with us today!
Matt Yeager, Manager of Advisory and Consulting at Prolifics
Email - myeager@prolifics.com
LinkedIn - Matt Yeager

To learn more about Prolifics, visit www.prolifics.com.