Aiming for Organizational Nirvana – Creating a Sustainable Process-Centric Organization
By Farhat Ali, President and Chief Executive Officer, Fujitsu Computer Systems Corporation
It is said, “Vision without execution is
hallucination.” This saying is often attributed to Thomas Edison
and was more recently cited by Mark Hurd in an interview by
Fortune Magazine when asked to elaborate on his vision for HP
shortly after he had taken over the reigns of the company. The
Internet era abounds in examples of companies that have failed
not from a lack of vision, but from an inability to clearly
translate vision into executable plans and then follow through
with concrete action. Knowing what you need to do, on its own,
does not guarantee success.
What Keeps CEOs up at
Night
According to the “CEO Challenge 2006: Top 10 Challenges” annual
report from The Conference Board – best known for producing The
Consumer Confidence Index and the Leading Economic Indicators –
‘sustained and steady top-line growth’ and ‘consistent execution
of strategy by top management’ were the top concerns of CEOs
across the globe, across all sizes of business.
Sustained growth and consistent execution of strategy requires
that
- You know what you need to do
- You do it right
- You continue to build on what you did right
It is said that ‘“Vision without execution is hallucination.”
This saying is often attributed to Thomas Edison and was more
recently cited by Mark Hurd in an interview by Fortune Magazine
when asked to elaborate on his vision for HP shortly after he
had taken over the reigns of the company. The Internet era
abounds in examples of companies that have failed not from a
lack of vision, but from an inability to clearly translate
vision into executable plans and then follow through with
concrete action. Knowing what you need to do, on its own, does
not guarantee success. You have to be able to:
- Deconstruct what you know (the vision) in to measurable
objectives and focus on crystallizing the ‘essence’ of these
objectives
- Chalk out business processes that center around this essence
- Have the right infrastructure in place so as to be able to
define, track, and continuously measure and refine the processes
that your organization will need to follow in order to exceed
business objectives
I have just described the main tenets of process-centric
organizations. Investing in creating a process-centric
organization requires executive-level commitment. It is a long
and arduous journey but it seeks to alleviate some of the major
issues that keep CEOs awake at night. It all begins with getting
to really understand what you need to do – with getting to very
essence of your business objectives.
Step 1: Getting
to the ‘Essence’ of Your Business Objectives – ‘Knowing What You
Need to Do’
Sounds simple, doesn’t it?
My personal experience has been that distilling out the
‘essence’ of your business goals can be the hardest step to take
in your organization’s journey towards process-centricity. At
the outset of this financial year, I shared seven
corporate-level objectives for my company. At the very essence
of these objectives that includes exceeding revenue and
operating income plans and increasing business from strategic
units, are three key elements – ‘products’, ‘service’ and the
‘customer’. The challenge for us, as a company, is making sure
that we build processes that never stray from the ‘essence’ of
our objectives. Moving a little away from home – a leading
financial institution that we work with has set itself a goal of
increasing customer satisfaction by responding to customer
enquiries faster. The challenge lies in providing all of the
bank’s employees with a single, up-to-date view of the
customer’s information so that the bank can respond with faster,
and provide better service. The ‘essence’ or the key element, in
this case, is ‘customer information’. How do you ensure that
good quality customer information is created, distributed and
maintained at all times? The first step in this project begins
with getting both business and IT subject matter experts to
concentrate on this key element. How should this information
change hands? The focus needs to be on building out the
‘should-be process’ centered around this key element. We
frequently see companies struggling to let go of their ‘as-is
processes’. If you think your company falls in this category,
consider ‘intervention’ – engage software specialists with
well-honed methodologies and schooled in taking an objective
approach to helping you get to the very essence of your business
goals.
Step 2: Piloting ‘Doing Things Right’
You’ve defined the ‘should-be’ processes around your key
business element (customer information, in this example). The
next step involves enforcing these business processes so as to
meet your business objectives. This calls for orchestrating
interactions between various silos – both people as well as
systems – within and across your organization.
Investments in the ever-increasing number of IT innovations and
the accumulation of technologies through mergers and
acquisitions has resulted in large enterprises getting stuck
with technology silos that do not interoperate with each other
effectively. Of late, the mandate in most enterprises has been
to consolidate applications, systems and IT organizations and to
invest in Service-Oriented Architecture (SOA) projects to
achieve this goal. In situations where processes are solely
dependent on interactions between applications, a bottom-up
approach using traditional back-end integration technologies
might suffice. However, most business processes require that
people interact with these applications and systems and
collaborate across departments to fulfill the business tasks at
hand. In these cases, a top-down, application-agnostic approach
using Business Process Management (BPM) technology is
recommended. The use of BPM helps people clearly define business
processes, flexibly access a myriad of back-end systems within
and outside the organization, and collaborate and share
information around business processes through a single interface
– it sets the stage for consistently doing things right.
Step 3: BPM Shared Services: ‘Building on Things Done Right’
You’ve piloted your first ‘should-be’ business process
successfully. How do you build on this success? Consider
socializing the idea of creating a shared-services group around
BPM technology that will serve as the underpinnings for your
process-centric organization.
Increasingly, large enterprises with multiple lines of business
are under pressure to consolidate infrastructure, reduce costs,
and ensure governance across the enterprise. In such companies,
however, most business units have their own IT groups and run
their own core processes, resulting in duplicated effort and
hence additional costs to develop and maintain applications. A
shared-services group is a form of ‘in sourcing’ – it works to
centralize business processes and the IT infrastructure to
support these processes to reduce this duplication. The main
benefits of shared-services are cost savings and rapid
deployment of new applications by leveraging access to
centralized technology and process expertise and the
infrastructure.
Design with SOA in Mind
Business processes that benefit several lines of business (e.g.,
human resources, training, finance, accounts payable and
accounts receivable) are perfect candidates for being moved to a
shared-services group. Furthermore, as the number of
applications hosted by the group grows, common themes and
patterns emerge, enabling the group to identify still more
processes that can be encapsulated as ‘services’ and reused
within other applications. For instance, an ‘employee background
check process’ might be a widely used service that the
shared-services group hosts and maintains. By leveraging the
‘reusable service’, the shared-services group can develop and
deploy new applications faster and at less cost.
Crafting the architecture so it can support multiple
applications is key to a shared-services environment. Identify
reusable components for subsequent applications. If you take
this approach, you are well on your way to setting the stage for
an SOA. Refrain from using proprietary technology. It will cost
more in the long run.
Moving to a shared-services infrastructure requires a
corporate-level commitment to investing in time, money and the
adoption of best practices. Consider engaging a BPM software
solution provider that has successfully collaborated with
companies to:
- Identify ‘process champions’ within organizations
- Facilitate getting to the ‘essence’ of business goals
- Evaluate and select the right technologies to support a
process-centric organization
- Set up a BPM Center of Excellence
- Determine the right charge-back model to business groups that
avail the shared services so as to make the investment in the
Centre of Excellence worthwhile
- Champion internal selling and getting enterprise buy-in for
widespread deployment.
BPM as a shared service is a fairly new concept. Most companies
struggle with internal business groups being wary of ceding
control over their infrastructure to a centralized group. It
pays to engage with business units on a regular basis to update
them on the enhancements to the shared-services infrastructure
and the Center of Excellence to alleviate their fears and keep
your organization on the course to succeeding as a
process-centric organization.
In Closing Embarking on creating a process-centric organization is a
decision, which should be made at a senior executive level,
above politics. We have had the good fortune of growing and
learning together with our customers. Our biggest takeaways that
we share with our customers are:
- Focus on distilling out the essence of your business goals
and share it with your team
- Define clear business processes that center around the
essence of your goals
- Take a top-down, process-driven approach to bringing people
and systems together to meet your business goals
- Invest in shared-services and SOA – it future-proofs your
technology investments.
Farhat Ali is President and Chief Executive Officer of
Fujitsu Computer Systems Corporation, a leading provider of
customer-focused IT and communications solutions for the global
marketplace. Prior to becoming President and CEO of Fujitsu
Computer Systems Corporation (FCS) in June 2006, he was Chief
Operating Officer and Chief Financial Officer. Farhat’s major
contributions at Fujitsu include building an effective executive
team, revamping the IT infrastructure and developing a
world-class supply chain. He has broad experience in all facets
of business and operations. Prior to joining Fujitsu, Farhat
spent over 20 years at Amdahl Corporation where he held senior
management positions, including Vice President of Operations,
Vice President of Customer Service and Chief Financial Officer
of Amdahl Global Services. He graduated summa cum laude from
Princeton University where he received a Bachelor’s of Science
degree in Electrical Engineering and Computer Science. Farhat
obtained a master of business administration from Harvard
Business School. For article feedback, contact Farhat at
fali@us.fujitsu.com
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