Tag: BPM

The Mirage of AI as a Cure-All: How to Ground Executive Enthusiasm in Realistic Outcomes

Written by Joel Frenette on September 11, 2024. Posted in Articles.

In today’s fast-paced business environment, artificial intelligence (AI) is often heralded as a panacea for a wide range of organizational challenges. Whether it’s optimizing supply chains, improving customer service, or enhancing decision-making processes, AI promises to revolutionize how businesses operate. However, as any seasoned project manager or business analyst knows, the reality is far more nuanced.

Many executives, driven by the latest headlines or industry trends—often referred to as “managing-by-magazine”—may come to you with the next “big idea” for an AI project. While their enthusiasm is commendable, it can also lead to unrealistic expectations and poorly defined projects that fail to deliver the promised results.

The Problem with AI Hype

The marketing surrounding AI often paints it as a silver bullet capable of solving any business problem. This can create a disconnect between what executives expect and what AI can realistically achieve. Without a clear understanding of AI’s limitations and the specific problems it can solve, organizations risk investing in projects that deliver little to no return on investment (ROI).

As a project manager or business analyst, your role is to bridge the gap between executive enthusiasm and practical outcomes. This involves not only understanding AI technology but also being able to communicate its potential and limitations in a way that resonates with decision-makers.

Start with the Use Case

The first step in any AI project should be to thoroughly discuss the potential use cases. What specific problem is the AI solution intended to solve? How will success be measured? By framing the conversation around use cases, you can help executives focus on the practical applications of AI rather than getting swept up in the hype.

For example, if an executive is excited about using AI to improve customer service, you might start by discussing how AI could be used to automate routine inquiries, allowing human agents to focus on more complex issues. From there, you can explore the potential ROI, such as reduced call times or improved customer satisfaction scores.

Identify Specific Deliverables

Once the use case is clear, the next step is to identify specific deliverables. What tangible outcomes will the project produce? These could be anything from a working prototype of an AI-powered chatbot to a detailed report on how AI can be integrated into existing workflows.

By focusing on specific deliverables, you can help manage executive expectations and ensure that the project remains grounded in reality. This also makes it easier to track progress and measure success, as you will have clear milestones to work towards.

ROI: The Bottom Line

One of the most critical aspects of any AI project is identifying the potential ROI. This involves not only estimating the financial return but also considering the broader impact on the organization. Will the AI solution improve efficiency? Reduce costs? Enhance the customer experience?

ROI calculations should be revisited regularly throughout the project lifecycle. As new information becomes available, it’s important to reassess the potential benefits and adjust the project scope as needed. This iterative approach ensures that the project remains aligned with organizational goals and delivers real value.

Refine Through Requirements Gathering

Even with a clear use case, specific deliverables, and a well-defined ROI, it’s essential to continually refine the project scope through requirements gathering sessions. These sessions allow you to gather input from various stakeholders, identify potential challenges, and ensure that the project remains on track.

During these sessions, it’s important to ask probing questions to get to the heart of the matter. What are the underlying business needs? How will the AI solution integrate with existing systems? What data will be required, and how will it be managed? By addressing these questions early on, you can prevent scope creep and ensure that the project stays focused on its core objectives.

The Power of Business Process Mapping (BPM)

One highly effective tool for refining project scope and ensuring alignment with business objectives is Business Process Mapping (BPM). BPM is a visual representation of an organization’s workflows and processes, and it can be instrumental in highlighting inefficiencies, redundancies, and gaps within current operations.

Before diving into an AI implementation, BPM can help you and your stakeholders gain a clear understanding of how work is currently being done. By mapping out existing processes, you can identify where AI might be most beneficial, as well as areas that may need improvement before AI can be effectively integrated.

For instance, if a process map reveals that a significant amount of time is spent on manual data entry, this could be a prime area for AI automation. Conversely, if a process is already highly optimized, it might not be the best candidate for AI enhancement, helping you avoid misallocation of resources.

BPM also serves as a communication tool, providing a common language for discussing process improvements. It enables all stakeholders to visualize where changes will occur, what the expected outcomes are, and how the AI solution will fit into the broader organizational landscape. This transparency can help prevent misunderstandings and ensure that everyone is on the same page regarding the project’s goals and expectations.

Conclusion: Turning AI Hype into Real Results

AI has the potential to transform businesses, but it’s not a one-size-fits-all solution. By taking a thoughtful, measured approach to AI projects, you can help your organization avoid the pitfalls of “managing-by-magazine” and achieve real, tangible results.

The key to success lies in grounding executive enthusiasm in practical outcomes. This involves thoroughly discussing use cases, identifying specific deliverables, calculating potential ROI, and continually refining the project scope through requirements gathering sessions. Additionally, leveraging tools like Business Process Mapping can provide valuable insights into existing workflows, highlighting areas where AI can be most effective and ensuring that the project delivers real value.

By following this process, you can ensure that your AI projects are not only aligned with organizational goals but also contribute to the long-term success of your organization.

Three Keys to Building a Strong Process Management Foundation

Written by Madison Lundquist on August 29, 2024. Posted in Articles.

Effective process management is not something that can be built overnight but is critical to the success of process management programs. Recent research by APQC indicates that only 52% of organizations feel their process management programs are somewhat effective, and only 11% feel they are very effective. However, the survey findings also point out three opportunities for growth:

Align process programs with organizational strategy
Measure process performance
Ensure a strong focus on process governance

Organizations looking to leverage opportunities for growth and to build their process program on a strong foundation should consider the points outlined in this article.

First, the structure.

Organizations can structure their process team in a variety of ways; and most often, the same way won’t work best for every organization. According to APQC’s research, most organizations (44%) have centralized process teams, 29% have federated teams, 14% have decentralized teams, and 13% follow an ad hoc approach.

While organizations will favor the structure that works best with their organization’s overall structure; there are pros and cons to consider with each structure.

Next, align to strategy.

Process work has traditionally involved teams driving efficiencies in cost, cycle time, and throughput. However, over the last few years, process teams are shifting these tactical objectives under broader organizational drivers.

While some organizations are not aligning to strategy as well as they should, 49% of organizations do align their process efforts to organizational strategy.

Strategy and process management activities should intertwine and inform each other. The following best practices lead to greater alignment of strategy with the work of the rest of the organization:

Planning – Do not limit strategic planning processes to the corporate level, and make sure that the planning process is constantly evolving with business needs and forecasts. Continuous improvement is a best-practice mantra.
Measurement – Use qualitative data in addition to carefully selected quantitative data points to set strategic plans but remember that financial numbers only tell part of the story. Qualitative information can provide the context needed to make valid decisions.
Organizational structure, communication, and culture – Strategic plans should include processes for communicating strategy. The organization will never be aligned if strategy is not clearly and consistently communicated and discussed. Embed strategic planning into people’s roles, driving employees to feel motivated to contribute and feel that their time is valued.
Process design – Integrate the strategic planning process with quality processes. Be sure that quality and strategy inform each other and enable enterprise success.

Lastly, measure process performance.

Once organizations have selected their team structure and defined their strategy, it’s time to consider how they will measure the performance of their process efforts. When organizations were asked how they use measures in managing process performance, 30% of organizations only use ad hoc measures, and 16% have no process measures at all.

Measurement enables decision making at all levels in the organization. Without measuring, leaders manage and make changes in the dark, without a clear view of which changes need to be made and where.

Determining which measures align with strategic goals is the first step. Once the organization selects the initial sets of measures for the different audiences (e.g., executives, business units, departments, managers, frontline workers), those measures can be tracked over time and tweaked as necessary. When an organization can look at its performance on a granular level and see how those pieces roll up into high-level metrics, it can begin to adjust in the places where they will make the biggest difference.

Don’t forget about process governance.

Organizations can have the best process program strategies, linked to organizational objectives and with smart measures in place; however, if the right governance is not in place, those plans can fail.

Governance encompasses all the structural elements that help process management function and often dictates the efficiency and speed at which an organization implements and embeds process management into its practices. Appropriate governance ensures that the right changes are made to processes and that policies surrounding process design and management are clear and relevant to the entire enterprise.

According to APQC’s survey, 75% of organizations have process owners present in their organization and 57% have process improvement specialists. Only 38% of organizations have champions or steering committees, which vitally provide oversight and governance for process work, help to prioritize opportunities, and align processes and process work with organizational strategy and objectives. Thankfully, the number of process sponsors and champions at organizations has improved since the last time this survey was conducted in 2020, showing the increased importance organizations have placed on these more strategic process roles.

Process management programs are not built overnight, and they all follow a different path. Starting with the key topics outlined in this article can help organizations get off on the right foot.

Introduction to the 4 Pillars of Digital Transformation

Written by Frank Quintana on November 15, 2023. Posted in Articles.

In the wake of World War I, French Premier Georges Clemenceau advised the French people that “War is too important to be left to the generals”. Paraphrasing his words I would say that “Digital Transformation is too important to be left to the marketing and sales departments”- Why? Because they are infatuated with the client and it is right because it is their main objective and priorities.

While the customer is very important, I will say paramount, I believe the causes of so many pitfalls and failures in the implementation of DT (Digital Transformation) are the obsession of marketing and salespeople on the customer the hyper concentration in the customers disregarding what I believe are the foundation of DT: The Four Pillars of Digital Transformation.

Even before any consideration of the digital part (Software and Hardware) of the DT equation we need to take care of what I call the 4 pillars of Digital Transformation.

Culture
Process and Policies
Data
Security

They exist in a hierarchical cycle so while some overlapping is possible, the same that when you wear your shoes, you first need to put your socks on. In the four pillars, Culture comes first, then Processes, Data and Security.

Following the diagram of The Four Pillars of Digital Transformation:

For marketing and sales, a customer is an external agent, a person that buys the company’s goods (products and services) for the DT practitioner. The concepts should be broader, instead of customer we should think about USERS.

Please, do not read me wrong. The Sales and Marketing people are paramount for the success of your DT but are not the only ones, in my humble opinion. DT is a matter of life and death for your company and if the CEO and all the C-Level are not deeply involved in the DT projects the probability of success is null, zero, nada.

I am using data as a general term because what we call data is often confused with Information and Knowledge, other two important blocks of the ILC, as I explained in my article “Do we know what are Data, Information and Knowledge?” on this website.

In my other model, “The Intelligence Life Cycle” which I used to discover the AI limitations, I explained what Data, Information and Knowledge really are and created a model of the intelligence Life Cycle based on 4 axioms or postulates in the style of the ancient Greek mathematician Euclid’s. I am going to present the ILC and the Limitations of AI at the PMBA Conference in Orlando next year.

Data is not the New Oil as the hyper propaganda instigated by the media and some data scientists in search of fame, support and money claim, and as you can see from the above diagram, occupied a 3rd position in importance.

You can get more details by watching my 4 Pillars of the Digital Transformation at the Virtual BA and PM conference in Dec this year.

Building a Business Analysis Center of Excellence: A Blueprint for Success

Written by Abhi Puri on September 21, 2023. Posted in Articles.

A Business Analysis Center of Excellence (BACoE) is a dynamic and strategic organizational asset that can significantly enhance the effectiveness and efficiency of business analysis processes. Often referred to as a Competency Development Center, a BACoE serves as a hub for collaboration, best practice management, and competency development in a specific functional area. This article explores the key elements of establishing a BACoE and its pivotal role in increasing business success.

Defining a Business Analysis Center of Excellence

A BACoE is more than just a department; it’s an organization that promotes collaboration, manages best practices, and elevates the competency level within a specific domain. Whether established as a virtual entity integrated into the broader organizational structure or a distinct group with a dedicated budget and authority, a BACoE can be staffed with either full-time or part-time members.

Creating a BACoE signifies an organization’s move toward higher organizational maturity, and as maturity increases, the risk of project failures tends to decrease.

Responsibilities of the BACoE

One of the primary responsibilities of a BACoE is to ensure consistent quality in business analysis artifacts throughout the organization. Variations in the quality and format of these artifacts can lead to project risks. The BACoE takes the lead in standardizing the expected quality, format, and presentation of artifacts, initially through training and artifact templates. Additionally, it promotes the use of standardized tools among business analysts and provides support for projects to maintain consistent professionalism.

Functions of a Business Analysis Center of Excellence

A well-established BACoE should provide support and oversight in several critical areas:

Tactical Project Assistance: The BACoE offers assistance to projects through project coaches, mentors, and staff. This includes planning business analysis activities at the project’s initiation phase, ensuring appropriate resources and approaches are in place, and providing resources as needed.

Methodology: The BACoE defines standard approaches for business analysis planning, monitoring, and execution. A methodology aligned with industry best practices, such as the IIBA®’s Business Analysis Body of Knowledge® (BABOK®), serves as a foundation for training and practice within the organization.

Best Practices: The BACoE curates a collection of company and industry-best practices for business analysis and artifact creation. This includes standards for use cases, data models, process models, and other documentation types.

Learning and Professional Development: It manages a competency model, training curricula, certifications, assessments, and practices for knowledge sharing. This includes the maintenance of knowledge repositories, discussion forums, and collaborative tools like “wikis.”

Tool Standards: The BACoE provides guidance on tools essential for preparing high-quality, standardized business analysis artifacts, including requirements management and visual modeling tools. It also maintains a repository of templates and guides for artifact preparation.

Forming a Business Analysis Center of Excellence

The establishment of a BACoE involves a series of steps:

Assessment of Current State: Evaluate the organization’s current business analysis maturity by assessing the skills of business analysts and gathering feedback from project managers.

Determination of Desired Future State: Define the level of maturity needed to support projects effectively.

Analysis of Gaps: Identify gaps between the current and desired states.

Specification of Desired Level of Maturity: Clearly outline the competency model and practices required to bridge the gaps.

Development of Competency Model: Create a competency model that aligns with the organization’s needs and industry best practices.

Dissemination of Improvements: Implement strategies to disseminate competency improvements through training, mentoring, and internal resources.

Maintenance and Continuous Enhancement: Regularly assess and enhance competencies through retrospectives, surveys, and ongoing training.

Best of BATimes: 5 Characteristics of Effective Business Analysts

Written by Giorgos Sioutzos on September 6, 2023. Posted in Articles.

“Business Analyst” is not just a title. Is not a job. It is a mindset, a concept and a structured process executed by people in different positions inside an organization. It’s more like, an approach of making the things happen from the realization of business need towards the final implementation.

It’s easy to call yourself business analyst but difficult to be a good and effective business analyst. The field can be great fun, and very rewarding, but you need to be prepared. People who take on business analysis roles typically believe they need three things: skills and experience, a bit of marketing, and an interest in working in a variety of environments. However successful business analysts know they need much more than a technical expertise and specific skills. They need a mindset and a specific attitude in order to serve with the best possible and feasibly way their clients business needs.

What is expected from business analysts can vary widely. And what they actually need you to do can be completely different from what they expect. Business analysis is an exciting, dynamic form of work. You can have a positive impact on your clients and be well paid for your effort. But you have to be appropriately equipped.

To be an effective and successful business analysis you need to continuously develop some specific characteristics.

The first is technical depth. It’s critical that you have the technical background to satisfy your clients’ needs. This means you have experience in a variety of environments. The more breadth of experience you have in your technical area, the easier it will be to apply your skill as a business analyst.

Second, effective business analysts need to understand quickly and accurately what’s happening in their client’s environment. Your power of observation needs to be well tuned. Being able to listen carefully and patiently, observe the behavior of your clients, and make sense of what is happening is very important.

Third, effective business analyst care about the welfare of their client’s business and the clients themselves. You need to be able to put yourself in your client’s shoes and appreciate the difficulties they may be facing or have faced. While what you do may seem routine to you, it probably isn’t routine for your client. You need to appreciate that fact and behave accordingly.

Another important characteristic is emotional intelligence. Often clients will engage you because they’ve had substantial difficulties. They may have a skill shortage, or they may not be sure how to manage what you’ve been asked to deliver. All these conditions create stress. On top of that, you’ll be striving to learn as much as you can as quickly as you can, so you’ll be under stress as well. Dealing with all that requires personal emotional maturity and the ability to assess and deal with the emotional state of your client.

Also, you have to develop the observation and effective listening as a personal characteristic, make recommendations based on sound business judgment, and be patient. As trust builds, the direction your client provides will likely become more reasonable. Work out your contract. Understand your client’s needs and desires, and establish a good relationship with your contract manager, and you could put on your superhero costume to celebrate your success. Observation helps towards a really robust problem definition statement. So as you look at your problem-solving, and you’re getting ready to start pursuing that initial set of ideas, you need to go through that prioritization and pick the highest value one that’s going to have the biggest impact on your overall solution.

Business analysis is performed on a variety of initiatives within an enterprise. Initiatives may be strategic, tactical, or operational. Business analysis may be performed within the boundaries of a project or throughout enterprise evolution and continuous improvement. No matter their job title or organizational role business analysts are responsible for discovering, synthesizing, and analyzing information in order the best solutions to be derived and the clients’ needs to be accommodated in the best possible way.