A BPM Framework for

KPI-Driven Performance
Management
Robert Osborne
Business Breakthroughs Inc.

Business Breakthroughs

Business Breakthroughs

A BPM Framework for

KPI-Driven Performance Management

Overview of the Enterprise Business Model and the

Governance Layer

Performance and Change Management as the Link Between

Governance and Operations

KPIs the Strategic Gap Measure for BPM

Performance Management from Discovery to Assignment

Change Management from Assignment to Resolution

Quick Hits vs the BPM Portfolio How to Choose the Path

Success Factors for Management Adoption

The Goal of BPM

Identify the Changes

Confirm Strategic Goals
Establish Change Office
Build Enterprise Business Process Architecture
Choose KPIs Cash, Employees, Customers, Suppliers
Identify BPM & Change Projects

Implement Changes through Projects

Operate the Change Management Office
Facilitate Communication
Facilitate Change Projects
Support BPM Project Teams
Enable the teams to be successful
Communicate Vision, Strategy and KPIs

Maintain Progress
Promote communication across the people at every level
Monitor KPIs and close performance gaps
Build teams and capabilities for change

Business Breakthroughs

Identify Goals,
Gaps
And Projects

Prioritize,
Guide and
Execute
Change

Monitor,
Measure &
Celebrate

Business Breakthroughs

From Vision to Change

Complete Strategic
Analysis and Build
Meta-Architecture

Input
to
to
Model
Model
Objectives ss

Identity
Vision
Strategic
Existing documentation
Subject matter expert input
Value Reference Model
(VRM)

Manage
Change

Build
Enterpri
se
Busines
s and
Process
Models

Model
Model
s
s

Build
KPI
Model

Validate
Architectur
e (Process,
Function,
KPI)
KPI Model
Model
KPI

Chang
e
Project
Portfoli
o

Strategic
Workshops
& Prioritization

Strategic Initiatives,
Gaps, and Quick
Win Opportunities

Business Breakthroughs

Enterprise Process Architecture and Value Chains

Business Breakthroughs

Company
Governance

Plan
Company
Business
Strategy

Define
Standards
of
Operation

Ensure
Compliance

Manage Company Performance

Key Performance Indicators

Manage Ongoing Company Operations
Execute Company Operational Changes
Manage Client Relationships
Manage Business Partner Relationships

Company
Operations

Brand
Mgmt

Market
Mgmt

Product
Mgmt

Lead
Generation

Sales

Product &
Service Delivery

Post-Sale
Services

Strategy to
Brand

Brand to
Market
Segments

Market
Segment to
Offering

Offering to
Opportunity

Opportunity
to Order

Order to Cash

Cash to
Satisfied
Customer

Product
Product
Research
Research

Product
Product
Development
Development

Product
Product
Creation
Creation

Segments to
Innovative
Practices

Offering
Concept to
Design

Design to
Product /
Service

Company
Infrastructure
Services

Provide &
Manage
Operational
Finances

Provide &
Manage HR

Manage Product and Service Relationship

Provide &
Manage
Infrastructure

Manage Supply Chain

Provide &
Manage
Technology
Services

Provide &
Manage
Transformation
Services

Enterprise Process Architecture and Value Chains

Plan
Company
Business
Strategy

Business Breakthroughs

Company
Governance

Define
Standards
of
Operation

Ensure
Compliance

Manage Company Performance

Key Performance Indicators

Manage Ongoing Company Operations
Execute Company Operational Changes
Manage Client Relationships
link
strategies
Manage between
Business Partner
Relationshipsand

Company
Operations
KPIs

are the missing

operations
Market
Lead
Sales
Product &
Post-Sale
Brand
Product
Mgmt
Generation
Service Delivery
Services
Mgmt
Mgmt
Using KPIs
to identify
and
prioritize performance
gaps
makes
sureto youre
fixing Offering
the most
important things
first Cash to
Brand
to
Opportunity
Order to Cash
Strategy
to
Market
Market
Opportunity
to Order
Satisfied
Brand
Segment to
The more
immediate
the
feedback
from
operations
to
Customer
Offering
Segments
management via KPI reports and dashboards, the more
Product
Product
Product
Product
Product becomes
Product
agile the
organization
Manage Product and Service Relationship
Research
Development
Creation
Research
Development
Creation
KPIs come
in four
classes:Design to
Segments to
Offering
Segments to

Offering

Design to

Innovative (Cash)
Concept to
Product /
Financial
Design
Service
Practices
Service Delivery (Customers)

Supply Chain (Suppliers)

Provide &
People
(Employees)
Manage
Provide &

Company
Infrastructure
Services
Fewer Operational
is better!

Finances

Manage HR

Provide &
Manage
Infrastructure

Manage Supply Chain

Provide &
Manage
Technology
Services

Provide &
Manage
Transformation
Services

Performance Management: Using KPIs to Identify Gaps

anage Performance

GM
Proces
s
Owner

KPI

Operation
s

Analyze
Analyze
Performanc
Performanc
e
e Gap
Gap

Prioritize
Prioritize
Performance
Performance
Gap
Gap

Assign
Assign
Performanc
Performanc
e
e Gap
Gap
Ownership
Ownership

Change
Change
Management
Management
Office
Office GM
GM
Enterprise
Enterprise
Process
Process
Architect
Architect
Change
Change
Program
Program
Manager
Manager
Quality
Quality
Performance
Performance
Manager
Manager

Chang
e
Office
Team

Operational performance is reported via

KPIs
If there is a performance issue, the GM or
Process Owner is informed
The Performance Gap is confirmed and
rapid analysis performed
The Change Office team is available to
help with the analysis and provide
recommendations
Based on priority, action is taken; The
higher the urgency, the more immediate
the action
Ownership of the Performance Gap is
assigned to individuals or projects
The performance managers monitor the
KPIs to determine if and when the
corrective action is successful

Change Management: Using KPIs to Prioritize & Drive the Change

The Performance Gap Owner reviews the issue

and determines, with help from Operations, if this
is a Quick Fix that can be handled by Ops. If
so:

Ops team is assembled, and a short project

is conducted

Solution is implemented and activated

KPI is checked by the team and assessed

If the Ops team determines it is outside their

scope of competency or ownership, a
Performance Gap Project is defined, and added
to the Change Portfolio

Portfolio is evaluated regularly or upon request

by the Steering committee and Change Office

Using KPIs and Strategic Targets, the committee

prioritizes, funds and assigns resources to
projects

Active projects require teams, and the teams

execute projects, implement the solutions and
monitor KPI impacts

Manage Change
Steering
Committe
e

Identify
Identify
Potential
Potential
Solutions
Solutions

Prioritize
Prioritize
Proposed
Proposed
Solution
Solution

Portfol
io

Change
Office
Team

Prioritize
Prioritize
Project
Project
Portfolio
Portfolio

GM

Execute
Execute
Project
Project

Change
Project
Team
Project
Project
Champion
Champion

Team
Team
Leader
Leader
Ops
Ops
Team
Team
Member
Member
s
s
Business
Business
Experts
Experts

Ops
Fixit
Teams

Project
Project
Business
Business
Leader
Leader
Project
Project
Team
Team

Execute
Execute
Quick Fix
Fix
Quick

Activate
Activate
Solution
Solution
Across
Across
Group
Group

When does it go
to the Portfolio?

What is a Quick Fix?

Driven to resolving a specific

problem or achieving a specific
goal.

Initiative to resolve a more complex

issue

Cross-department issue, where all

the people required are not
immediately available

May require IT/MIS participation

The required level of activity &

effort is uncertain

More detailed analysis is needed to

understand and completely identify
the problem

The solution can be identified

quickly
Implementation authority exists
on the team or can be confirmed
within one or two business days

All the people required are

immediately available

A short burst of activity & effort

(can range in hours to few days)

Impacts multiple departments or

multiple companies

Emphasis on action over

extensive analysis

Requires sponsorship or executive

approval
10

Kolbs Learning Cycle

Informed
Action

Business Breakthroughs

OverReaction

Action

Action

Awareness

Awareness

Understanding Knowledge

Understanding Knowledge

Analysis
Paralysis

This circle shows the risk of moving from

Awareness to Action without
Understanding the consequences and
impact of those Actions
Equally there is a risk of failing to act
quickly enough through too much
analysis.

This circle represents the correct cycle of

progression

When undertaking a new initiative, teams

must worked round sequentially,
beginning with Awareness

Ensures that the action is within the

correct context

The Flow of Improvement

Start Here

Business Breakthroughs

Document
Situation

Move on
to Next
Issue

Celebrate
Success

Identify Gaps
& Problems

Design
Solution

Improvement
Lifecycle

Make this
the Standard

Measure
KPI Results

Confirm
Feasibility
Make
Changes

Monitor
and Verify
Change
12

12

Performance & Change Management

A KPI-Driven Performance Management Architecture

anage Performance

GM

Manage Change
Proces
s
Owner

KPI

Operation
s

Analyze
Analyze
Performanc
Performanc
e
e Gap
Gap

Assign
Assign
Performanc
Performanc
e
e Gap
Gap
Ownership
Ownership

Prioritize
Prioritize
Performance
Performance
Gap
Gap

Change
Change
Program
Program
Manager
Manager
Quality
Quality
Performance
Performance
Manager
Manager

Identify
Identify
Potential
Potential
Solutions
Solutions

Prioritize
Prioritize
Proposed
Proposed
Solution
Solution

Portfol
io

Change
Office
Team

Prioritize
Prioritize
Portfolio
Portfolio

GM

Execute
Execute
BPM
BPM
Project
Project

BPM
Project
Team

Change
Change
Management
Management
Office
Office GM
GM
Enterprise
Enterprise
Process
Process
Architect
Architect

Steering
Committe
e

Team
Team
Leader
Leader

Chang
e
Office
Team

Ops
Ops
Team
Team
Member
Member
s
s

Ops
Fixit
Teams

Business
Business
Experts
Experts

Continuous
Continuous Process
Process Improvement
Improvement

BPM
BPM Proj
Proj
Champion
Champion
BPM
BPM
Project
Project
Business
Business
Leader
Leader
BPM
BPM
Project
Project
Team
Team

Execute
Execute
Quick Fix
Fix
Quick

Activate
Activate
Solution
Solution
Across
Across
Group
Group

Change Office Organizational Structure

Business Breakthroughs

Change
Office
Manager

Steering
Committee
Portfolio
Financial
Controller

IT (MIS)

Enterprise
Process
Architect

Quality
Performance
Manager

Change
Program
Manager

Change
Project
Sponsor

Team Leader

Project
Team

Business Experts

IT Lead

Change Project
Team Structure

KPIs
Drive
Project
Prioritie
s for
the
Teams
&
Measur
e
Success

KPIs the Driver for BPM

Strategies must
contribute to Vision
KPI
Operational KPIs
must contribute to
Strategies

Setup a KPI
Dashboard team that
is 100% committed to
building the executive
dashboards

Implement the KPI

model in one value
chain at a time
Start small, get some
successes, prove that
the entire cycle works

Strategic
KPIs

Se
tT
arg
ets

Value Chain
KPIs

Activity / Workflow
Performance
Metrics

lt s
su
Re
rt
po
Re

Business Breakthroughs

Vision
KPI

Task Performance Metrics

KPI Model

Success Factors for KPI-Driven Performance Management

Business Breakthroughs

Use KPIs to maintain alignment throughout the organization

The more current the KPI measure, the more agile the
organization can be

A formal and fulltime Change/BPM office is needed;

Change/BPM is not a part-time job

Dedicate team to build KPI Dashboards

Define a clear process for how to react to KPI variations

A BPM Framework for

KPI-Driven Performance
Management
Robert Osborne
Business Breakthroughs Inc.

Business Breakthroughs