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Courtesy of Innovation & Excellence's José Pires below is a transcript of his speaking session on 'Intelligent Business Process Management: Where Leadership Meets Process, Technology, and People' to Build a Thriving Enterprise that took place at iBPM Live - Virtual Conference.
Intelligent Business Process Management: Where Leadership Meets Process, Technology, and People
So, the title of this presentation is then the Intelligent Business Process Automation.
Wow. Great, enduring organizations, A scale people, technology, and value. And as I mentioned, I don't wanna discuss things. Theoretically, I want to share it with you.
The practices and principles and mindsets, and mechanisms that work for organizations that have successfully transform themselves and they have successfully implemented intelligent BPM.
So what does that look like? What are some of these experiences come from? They come from more than 50,000 cross industry excellence and innovation leaders that I have V that. I have been privileged to collaborate with partner, with on implementing excellence, innovation, and transformation initiatives that for value creation.
And what we have learn from this practitioners, and the many more there and not even shown in that slide, is that there are four components that they, that matter to them, that were significant components in this transformation and the and then the implementation of intelligent BPM.
So if you know you, you don't have to submit your questions here, if I was doing your feedback here. But if I was doing a poll of some kind of the asked, you, know, what do you think matters most on this successful journeys? Do you think it's about ideas? Do you think it's about methods?
Do you think it's about technologies that they use, or do you think it's about the people, and how they engage the people?
And there is a number of, I'll turn it is for the feedback from the audience. But I'm not going to ask that question. I just want you to think about that question, and I'm going to give you the answer.
So, our first say that, wow, it must be ideas, because you need new ideas that create value to, you know, to generate a worthwhile transformation here, But then I'll also say that ideas, an organization's ideas are everywhere.
What are uncommon are people in your organizations who are willing to put the reputation behind those ideas, OK, so it must be methods, righteous there. It must be, you know, that we need a disciplined framework for implementation, for execution, for discipline, execution of this, of this new ways of creating value.
Well, that's true, but I'll also say that I have been for more than 25 years, A certified Lean six Sigma Master Black Belt, but for most people, that sounds like a dangerous mental condition. It doesn't really help them.
because methods alone do not transform businesses.
People do, OK, OK, so it must be Technologies, right? Just that, because I see you talking about technology all the time about the exponential technologies are changing the way we reshaping the way we work. and the way we live.
Prompt RPA, process mining, natural language processing, artificial intelligence, and a host of exponential technologies that are truly impacting the way we work and the way we live.
And while that is true, if you pay close attention to what I say, I will also say that technology can make stupid happen at the speed of light.
Wow. So must be people there, right? Because people are our most important asset.
Again, I'm not going for what makes use. It makes us feel good. I'm going for the empirical evidence on how does great enduring organizations operate.
And what we have found is that all people matter, people have intrinsic value for every organization.
But it's not about all people. It's about, create a meritocracy of ideas, accessible to all people.
But relying on the right people, the people with purpose, passion, discipline, and resilience to amplify the values, and principles, and mechanisms that we believe are most important to our organization, Our line of a very clear purpose.
So while all people matter, you are looking for the right people in your organization that will allow you to be successful in this journey.
So you see the world of greatness is quite confusing because the world of greatness is not about justice Options off.
You know this or that the world of greatness is filled with seemingly contradictions, forces that pull in very different directions.
Force is, you know, we're going to talk about the need for clear purpose and discipline.
The need for explanation technologist and the human principles and values, trust, vulnerability, collaboration.
So the world of greatness is not a or world. The world of greatness is A and that world and requires us to master the seemingly contradictions.
And this is hard, because most organizations want kind of a simple answer to the problem.
And there is no greater contradiction among great enduring organizations than the contradictions of excellence and innovation.
Because in the world of excellence, it's all about setting up systems and the setting high performance standards and creating systems that meet and exceed those high performance standards, and that's the world of excellence. And there is nothing wrong with that. A lot of organizations will focus on that.
But if you only do that, eventually, you'll become obsolete. Especially in a, in a, in a rapid changing world in which we live in today where technologies are shifting and incredible for speed and all, those macroeconomic forces also play, you know, acting on the system.
To just do exos, you will eventually become obsolete.
So, it must be that the great enduring organizations then are the most innovative them, right?
They focus on innovation on creating something new that creates value.
Well, that sounds very tempting, but when we look at the empirical evidence, that's not the case.
The dominant organizations of our time are not the most innovative, despite of what you may think, or the perception that the media can create for you.
Because, what you see in the media are the successful ones.
What you don't see in the media, are the most innovative organizations that fail, and the reason they fail is because they fall in love of innovation, and they fall in love with technology for its own sake.
And the, and what they do is that they change very fast. They are nimble, and they pride themselves on being nimble, But if you look at them over a longer period of time, it's, like, they change fast, but it's a zig-zag across a horizontal line.
The reason the reason is because they do not have the discipline that's necessary to scale their innovations towards a common purpose, towards a higher purpose.
And, the and the, and, again, the most innovative organizations are not the great, enduring organizations of our time.
So it's neither excellence nor innovation that, that, that sends you to great. And during performance.
It is the intelligent blending of these forces that pull in different directions, that are present on grain in their organizations. By all means, they have systems in place. They have high performance standards, and they meet and exceed those high performance standards, with robust design, and improvements in efficiencies. And they are, they have operational excellence, and business excellence, in general.
But that's not enough.
They also have the discipline just step away from that, Realize that I cannot design cars by squeezing efficiencies out of horses. So I must come up with new ways of creating value here. Not a five or 10% better way, perhaps A 5 or 10 fold better way.
But here's the catch those innovative organizations now that look at excellence with some level of disdain and say there's gotta be a better way once they find that innovation. They don't just fall in love with that innovation. And continuously innovate or fall in love with technology.
What they do that's unique is that they were able to scale the innovations that they have created, consistent with their purpose.
And the way that they scaled those innovations successfully is by implementing the principles and mechanisms of excellence, each of the innovations that they created.
This seems subtle, but it's incredibly important.
Differentiating factor from great, enduring organizations. Oh, and by the way, being a great and learning organization is not a title that you hold forever, that is, that is a state.
There's only one thing that's harder than becoming a great Enduring organization is actually to maintain your status as a great enduring organization because you have to continuously, um, you know, intelligently bland, this forces of excellence and innovation. There are, that create tremendous friction in the organization.
So, let's talk about, let's, let's, let's go deeper and get a bit more practical on the challenges that we have. Now, I have been blessed with a, you know, over 50,000 cross industrial leaders of excellence innovation. I've learned a lot from, and, and I'm grateful for them, and the thousands of organizations that have share openly their experiences with me and collaborated with them.
But, there is a difference between advising organizations and leaders on how to do something, actual Liebman from within, saw and spend some time here with you, on five organizations in my career, that I was a leader of excellence, innovation, and transformation from within those organizations. And I want to share it with you some of the important lessons that, from those organizations that you can take into your organization and, at a very minimum, reflect on how you're dealing with this concept in your organization.
So, there are hundreds of lessons I'm going to focus on, just a few.
So, first of all, I was a kid who was born in Brazil. I was educated in Gooding versus in the United States of a background in engineering, physics, and investment banking.
My first job was working for a Japanese company on on technology development for Sony, and Sony at that time, was a leading technology development company for displays, which was the area that I was working on. So, at my first job at Sony, and I'll share this experience with you, because it's a very important concept for excellence and innovation acceleration. On my first job, my boss, his name was .... You would call him High Ash a son. So I asked, his son, came to me, my first day at work, and says, Just a son, I have an assignment for you.
You must identify 100 innovations between the research center and an advanced manufacturing facility.
And I was completely unprepared for that. I thought I was going to get some training, and, and then he just threw me out there to identify innovations, I didn't even know what innovation was.
So, I'll make a long story, short, was one of the most difficult weeks of my life and career, and by the end of the week, once I identified 20 or so innovations, I had to come up with 80 others to filling my 100 innovation report. I delivered your hash a son.
And halfway through it, he stops at my report and says, Just a son.
How come you're so stupid?
I look at him with all the knowledge that I had gotten a university I was like, and I gave him his dumb answer. And I look at him and says, I don't know.
And he says to me, Your problem, you think too much like an engineer, You must learn to listen to the process, and he didn't really mean the process or the set of activities, a step by step. He met all of it.
He meant the system, but, you know, I didn't know I was young and I didn't know what that meant.
And I know that I didn't like caches Sun Iowa's, like I was resentful for him saying those things about me, about my work, Anna. And so, the next week, I was like, I came ready to apply, tackle this problem as I had to like a stronger attitude to tackle the problems the next week, and hoping that he was going to give me a new assignment. And, sure enough, on Monday of the next week, he comes in and gives me a new assignment. And he tells me that there's a son. I have a new assignment for you.
Know, I have this weight that lifts off my shoulders. He looks at me because I'm hoping that now I'm gonna get some trainee here.
He looks at me and says, There's a sun this week. You identify 200 innovations in our system.
So, there is a longer version of that story that I will spare you because it's a sake of time here but, uh.
That was, that was hard.
That second week was very, very hard.
Now, what are the lessons here is not that, you know, you have this Japanese leader who was trying to torture me, no, he is actually one of the greatest mentors of excellence innovation I've ever had in my career. A father figure for me to this day.
First of all, one of the key lessons to be learned there is that, when it comes to real innovation, innovation doesn't come from the mind of the expert, because, in the mind of an expert, there is only one way.
It is the mind of the novice that I had for a short period of time while I entered the organization.
It is from the mind of the novice that there are many ways, and it is from those many ways, most of them, incorrect or a feasible, feasible ways that potential innovations come from, and that's what he was trying to capture.
Now, again, great excellence, innovation leaders, they develop both minds. They have both the mind of the novice and the mind of the expert, because the mind of the novice comes up with new ways of doing things. The mind of expert is actually quite good at scaling those ways, so it's not one or the other. We need both, is intelligent blending of both.
The other big lesson that I would like to share with you is that, I suggest that the way you're tackling intelligent business process management, and innovation, your organization is probably wrong, because you are taking it from a very analytical perspective. A very rational perspective that we're going to we're going to do the oldest rational things and identify the, the methods, the ideas, the technologists, and start implementing them. And we're going to get great value creation.
But, but it's not about ideas. It's not about methods, not about technologists. It is about people, but the right people.
But the right people who will scale the core values of your organization and innovation for value creation, your organization.
Those right people, they are only revealed by the test of innovation execution.
So as a leader, your job is to create a meritocracy of ideas with clear execution mechanisms accessible to all in your organization.
Equip people to think differently about problems and opportunities, create a disciplined framework for execution. But most important, let the test of innovation execution reveal to you who are the right people in your organization.
Because here's the deal.
Real innovators and real innovation doesn't care about gender, race, ethnicity, titles, or how many certificates you have hanging on the I Love myself wall.
It doesn't care. You're creating something new.
The traits, the separate real innovators from the rest, are only revealed by the test of innovation execution.
And those traits are purpose alignment. The purpose of the individual is aligned with the purpose of the work, that they do more, even show them the purpose of the organization. Is alignment of the individual's purpose with the purpose of the work that they do for that organization.
And then it's followed up by three other traits that are revealed by innovation execution, be real, innovators, have purpose, and then they have passion, they have discipline, and they have resilience.
So purpose, passion, discipline, resilience is the key lesson that I want you to take from here. You need to find in your organization to really scale value automation, business process management in your organization.
You need to find the amplifiers in your organization. They will have purpose, passion, discipline, or resilience.
When I left Sony, I joined a startup in the semiconductor industry that changed the world. I was incredibly privileged to work with the most, the brightest, scientists in the semiconductor industry, lithography, semiconductor lithograph the area of the semiconductor industry.
They came from dozens of different countries. We already in California, on a startup that had revolutionized semiconductor technology with a new laser system for imaging chips and making the the transistor is smaller and smaller and allow Moore's law in the semiconductor industry to happen to this day. Now, this was early 19 nineties, and that, while we have, we thought that if we just get the, the, the brightest people in the room, we're going to be successful.
And that is not true.
And the lesson that we learned there is that, by all means, you need people who are, who have integrity. You need people who have intelligence, you need people who have entrepreneurial energy to build something new.
But that's not enough. If you just get the brightest people in the room, what happens is that they spend a lot of their time trying to showcase that they are the brightest person in the room.
What you want to do is to develop widely develop collaborative leadership skills. Collaborative leadership skills are not well understood. Collaborative leadership skills is not about consensus.
Building collaborative leadership skills is about surrounding yourself.
Working towards a common purpose, make a common purpose clear to all and worthwhile for all. Working towards that common purpose.
But as you lead towards that common purpose, you're surrounding yourself with people, with very different perspectives who are willing to voice those different perspectives without fear of retaliation, There's a lot in their collaborative leadership, is about common purpose, is about surrounding yourself with people with different perspectives who are willing to voice those different perspectives without fear of retaliation. And it was not until we implemented collaborative leadership skills widely in the organization that were then, very successful.
In fact, the most successful, semiconductor, capital equipment and startup, in the industry of the cycle, the in the history of the semiconductor, capital equipment industry, ..., and that was the company this day. You can look it up.
Now, from this two companies alone, the whole mechanism of excellence innovation and transformation acceleration was derived from those organizations and the reason. And that's why I like to talk about, about these organizations and the lessons that we had there.
Because if I have a takeaway for today that I want you to think about how to scale intelligent business process management, I want you to think about these lessons from these two organizations.
You need to create a meritocracy of ideas with clear execution mechanisms. Engage the right people in your organization, to create the most of that in the shortest time and simplest means.
And equip this people with collaborative leadership skills, and discipline, innovation, execution, skills, That's it. Collaborative leadership skills, and discipline, innovation, execution skills. So remember that, because that's why we then propagate in the other organizations, and Nestle now.
You go from a startup in California to accompany a free 150,000 professionals around the world, 585 business units, and how do you accelerate innovation in an ecosystem like that?
And the lesson is culture eats strategy for breakfast.
Excellence, innovation in any other initiative that you have is just a side dish in the jaws of culture.
So the lesson is be mindful of culture.
as it exists, be empathetic to culture as it exists. Meet, meet, meet.
You have to meet people and culture where they're at, and then create the most value in the shortest time and simplest means where they are act, before you have the audacity, to start trying to change them.
Because you must develop trust, and you have to develop that trust. You have to show integrity and respect for how they got there.
And then you have to create value for them, where they're at, by bringing some new concepts, and methods and implementing them, Implementing new ideas that create value where they're at. Then, you bring them along.
And over time, transformation happens, but I see a lot of organizations and leaders who are so eager to transform and change things, and they ignored the history. They ignored the culture, and they just wanted to jump to the next day.
Good luck with that.
That's nearly 100% failure rate, so it's a recipe for disaster.
You, I know you'll want to move things along faster, but you don't do that faster by by ignoring what's there, You'll have to show empathy for what's there.
Meet them where they're at, Create the most value, the shortest time and simplest means as you move them along.
Now, as we left that organization, we joined Black and Veatch, which has an organization with more than 100 years old of successes.
And this organization with more than 12,000 engine interdisciplinary engineers doing the most amazing infrastructure projects around the world.
Now, there comes a CEO and asked me to, hey, help us move along this journey here.
Help us go in this journey, help us, create value and transform our organization. We want to be more innovative.
We want to be, we wanna create more value for our clients, for our organization, For society. We want to be value creation leaders, OK. Wonderful. So, I get in there, and, and what you find in a culture that being successful, very smart people, you don't get to change it by saying, Hey, let's just jump phases and go to this next stage.
Know you meet them, where they're at, and we're aware that there are focusing, They thought it was important to focus on ideas and methods and also tech knowledge.
So, you know, what we did, When we met them, where they're at, We focused on ideas matters, and technology to create value for them.
And, for nearly six years through a discipline meritocracy of ideas, If clear execution mechanisms, we identify ideas and projects that we could work on that will create the most value. Shortest time is simplest means based on what they wanted to do.
Now, this wasn't easy, because I knew that that wasn't next step, but you can't get them to the next step, once you develop the trust with them.
Why does this matter? Because, as you can see here from this graph, we're creating value there over a six year period. We've got your 500 people, who are actually dedicated to doing this, in this organization by your six. And you may say, Well, that's kind of slow, and you know, you couldn't have done things faster, and get a greater value.
Here's the reality.
The reality is, that 50% of all organizations that engage on that transformation of any kind oral, or a big initiative in your organization, that's multi-year.
More than 50% of those initiatives die by year three, between 18 months and three years, 99% of them die within five years.
So keep these numbers in mind, because when someone tells you that they are doing a transformation is very successful, ask them how long they have been at it, because most organizations will will claim success by your Chu. And then E or three, it's dead and gone.
And they have to restart something.
So, if it's more than five years, then pay attention to what they have done.
Now, not only we went past that five year mark, and we're continuously creating value, we had the courage, at that point, to challenge our leaders, to say there is a way of creating even greater value.
Instead of focusing on ideas, methods, and technologists, which is what the organization feels comfortable because the very analytical know, left brain type of organization, we want to be more entrepreneurial. We want to find the right people in the organization: people with purpose, passion, discipline, resilience.
When we said that people like your organization was scared, because like, Well, we've never tried this before.
We may fail at this, but I had to build enough credibility now with the senior leaders in the organization, to at least experiment.
We went from a typical kind of a Lean six Sigma program, which I have nothing against good discipline, awesome opportunities for value creation. But we went from that to a much more entrepreneurial collaborative approach focused on identifying the right people. People with purpose, passion, discipline, rosiness. What do you need to do for that? You need to create a meritocracy of ideas accessible to all.
And now you don't make it just a few people who are selected to be enlightened, are participating in training now. You'll make it accessible to all in your organization on a voluntary basis. Nobody is forced to do anything.
And you're developing collaborative leadership skills and innovation, execution skills for value creation.
And when you focus on you, do that in a disciplined fashion, what you see and you make a voluntary and you equip people with this different perspectives on problem solving. What you see then is that, you know, a lot of people are on the sidelines, seeing what's going to happen, and what you saw on the or seven is that, wow, you know what we did better than your six Anthony RNA. People like, wow, this is for real on your nine. Wow, I can, this is a true meritocracy of ideas with clear execution mechanisms. And by your 10, we saw an explosion in growth and over a 100% improvement of value creation, and over 1000% increase in voluntary participation around the world.
How focusing on the right people, giving those, those people, the, I don't know who they are upfront, by the way. What we do is that we equip every one of collaborative leadership skills, and innovation execution skills.
The discipline methodologies are underneath that, lean six Sigma. Whatever, you want to have, an ...
pro side to make the m.i.e.c.h.v., the methodologies are normally not most critical, but they matter, but they are below the line of collaborative leadership and innovation execution, leadership skills.
And then when you do that, what you see when what we saw is unprecedented in the industry. Exponential growth, 10 years plus now, we said, OK, we're onto something here, let's try to do this now across hundreds of organizations just see if it was a fluke or if it's true.
And while we saw before we went to that level, we actually said, let's do one more organization now. That is a Fortune 100 organization. Let's see how that works. Now, adding down for a corporation, a energy of Fortune 100 organization. The idea was to go for extraordinary with the company, but the company was any fame. But extraordinary.
By 2010, the company had a market value that was below its book value, and the market was discounted this company. I was like, you know, you're not going anywhere.
So they brought a new CEO, and this new CEO look at the company, said, well, you know what?
We don't have many comparative advantages on this company, so we're in trouble. So all we need to do is to build a culture here of excellence and innovation for value creation.
So I was incredibly privileged to be asked to join this journey, and the intuition, too, implement this systems of excellence and innovation acceleration with this organization, and what it translates to are the things that I already mention to you. I'm going to keep re emphasizing the swings, a meritocracy of ideas with clear execution mechanisms accessible to all.
Now, we have widely developed collaborative leadership skills and innovation execution skills across the organization on a voluntary basis.
By 2018, we were identifying, prioritizing, and executing to full implementation, more than 2000 innovation projects per year.
This was translated into a financial event. Validated benefits greater than one billion dollars in additional earnings, financially validated, and reported externally.
Now, you may say, well, you're making up this numbers. You know, it cannot be that you've created that much value.
Let the market speak by 2018, 8 years after we embarked on this journey.
This was an enterprise worth $35 billion.
Add the market value.
So, again, this patterns are shown here, and I want to share this patterns and re-emphasize this patterns so that you can take them to your own business and experiment yourself, see what works in your business. Because this is what's ultimately valuable. Not what people think works, how, what actually works. So I say that you need to unleash the power of your, people, should go for extraordinary.
You need to create a meritocracy of ideas of clear execution mechanisms and equip them with collaborative leadership, and innovation execution skills.
You have high performance standards, but let this, the, the, let the innovation execution tests review in your organization, the folks who purpose, passion, discipline, and resilience to create value for your organization collaboratively. If you could look at this pictures that I have here, you'd see me with 14,000 employees in one organization making that happen.
So, how does IBM connecting to this? Those principles, by the way, are very important. That's why I spend time on those principles.
You can get all this, no procedural things will not be PM, right. But if you don't have those principles, right, this stuff that follows here doesn't matter.
So I'm going to go fast on the procedure stuff, and give you a couple of examples.
So, I BPM, it's simply the intelligent blanding of stewardship, which is the ultimate level of ownership with the wisdom of the organization and proven methods to identify, prioritize, and implement significant value creation, business process designs, improvements, and innovations.
You can take a screenshot of this later on, and think, Oh, you're on what that means. Now there are different levels of maturity, right? And you have to figure out why maturity am I in my organization? And there is not one size fits all, because you're going to be at different levels of maturity in different levels of the organization.
It helps to kind of understand where you are. You are recognized level, identified the find marriage or optimize level.
Out there, I could spend an entire day just discussing this scale, but I'll just save this.
Most processes are not worth having, and you should look to eliminate, or reduce them to the simplest form.
But if a process is worth having, you should have it at the defined level.
It's you should not try to just optimize your processes.
That is not what collaborative value creation leaders do.
You should only optimize processes if that optimization creates value, and you have to be careful about that. Do not fall in love with Process, OK. Follow all the value creation, and let that be your guide.
All process worth having are worth having a defined level, and then you have to make a decision, whether or not you'll make incremental process improvements to be manage and optimize.
Also, you have to think, understand the levels of .... Innovation, is not one size, fits all, the most, The most successful organizations, when it comes to value creation, they understand the business innovation happens at the core level, at the adjacent level, and that the disruptive level, and they have a portfolio across the core adjacent, and disruptive levels.
So, think about where you are as an organization, and do not fall in love with disruptive innovation, and put 100% of your efforts on 100% disruptive innovation, because you're going to fail, Because, not even the most innovative organizations in the world do that.
90% of your innovations come from core, and The Jason says, so, make sure you have systems that covered that, and, then, you play with disruptive innovation on, on, and, and some level of, technology, disruption, as well, but make sure you don't sacrifice, score, and adjust, and adjacent innovations, because of disruptive innovations.
Now, what are the success factors? And pillars? For IBM value creation that we have learned?
There are three Organizations that create value through I, BPM, disproportional, valuable, enduring value for Y BPM. They have clear governance, defined roles, and the structure for I BPM value creation.
They have methods.
There are proven methodologies, swift clear execution mechanisms and common language on how we're going to execute on this, and they have.
collaborative leadership development, skill development for all professionals, not just a critical field, one of the field, but to all skill development for all professionals on collaborative innovation, for value creation. So I'm going to talk briefly about each one of these items on governance.
So don't have GOVs, this is not, IBM is not gonna work for you.
You and the governance, it starts with clear business and process ownership. Do not work on anything, that does not have clear business and process ownership. That is the foundation. Those are the, the stakeholders who are going to implement new ideas that create value and sustain them.
Now, the next level, you're gonna have entrepreneurs and collaborative leaders in your organization who are helping identify and collaboratively lead these improvements and innovations for our organization, and you must equip them with collaborative leadership skills and innovation execution skills. Yes, you do need to have mentoring and coaching for them, but this mentors and coaches, they are not masters of methodologies, They are masters of intra partnership.
There are Masters of collaborative leadership, there are masters of value creation and they are only revealed by the tasks of innovation execution they are serial entrepreneurs. They are not some technocrat or some tool master, they are serial entrepreneurs, serial, collaborative value creation leaders.
Now on this governance, you must also have clear champions and sponsors for the work that you're doing.
And they have to be aligned with the coaches, with the collaborative leaders in the process owners on the identification, prioritization, and execution of what creates the most value for you. And you certainly benefit from having a steering committee, which is a subset of your executive committee. Looking at this entire system, and providing feedback and support to this entire system. So this structure and this level of governance, if you don't have it, I don't care if you're doing visited departmental level or across the enterprise.
Think about this roles and ask yourself, do you have this role is clearly defined, and are the people in those roles, the right people?
It should do, what needs to be done.
So, this structure is very important, and governance is very important.
Now, as far as methods are concerned, there are hundreds of different methods that you can use, but I'll share with you what we've seen from a disciplined execution perspective and value creation perspective, the methods that have created the most value.
Now, we have seen that innovation as a discipline is very, very helpful. For organizations. And for professionals, and Lee and collaborative leaders. They learn to think differently. They learn to innovate, they learn to simplify, Teach them innovation as a discipline.
Also, they built they, they, they benefit tremendously about understanding the basics of business process management. A lot of people want to do intelligent business process management, and they don't even understand what business process management is.
No, it's the end to end process, ownership, and definition of your most critical value creation process is the ones that create value for your customers.
Who owns them?
And two, and how are they define, This is not a trivial question, because your your senior leadership team does not agree on that. You need to collaboratively facilitate sessions that allowed them to visualize them, agree on those, end to end processes, most critical processes in your organization.
Then you'll get into the efficiency methods and improvement methods with Lean About increasing speed, eliminating waste and things like six Sigma that reduce variation of satisfied customers. That's wonderful.
So, remember, however, that separately and you may have backgrounds on some of these separate methodologies separately, they're effective, combined, their exceptional. And what makes them exceptional is when you, when you do not become a master of this methodologies, but you become a master of collaborative value creation.
Because methods alone do not transform businesses, collaborative value creation leaders, keep this in mind, find those people in your organization, that's where you're looking for.
Now, to go a little bit further, a bit more advanced level here, while we see on a BPM vetted creation material levels is that at the lowest level, if you're gonna have a multi-million dollar business, you don't really need a whole lot. You need an entrepreneur who is smart, who has kind of a good answer into the market and that individual brilliance, along with some passion, discipline, resilience from, from an entrepreneur, can create a multi-million dollar business, so you can go do that.
Now, if you want to become a multi-billion dollar business, that's not enough, Now you need to scale that individual brightness. So now you need to scale that individual brightness with I BPM, systems and mechanisms, which means that you're going to have to have the governance that we just discuss about with clear structures and roles for IBM, vedder creation. And I've been on the side. You're going to be taking your bets with growth and technology accelerators.
But it's all part of a systemic approach now to scale that individual brilliance. And that will allow you to be probably a multi-billion dollar organization if you do that well over a longer period of time.
But that's not enough to be a great, enduring organization to be a great and doing an organization. You need the next level. You need the level that can possibly get you to be a multi trillion dollar organization, is very few leaders and organizational, whoever get to taste that, OK.
But to get to that level what we have learned is that you need to have all this competences and capabilities that we have highlighted previously here, but you must have choose skills that I mention to you previously.
Widely developed collaborative leadership skills, decentralized, as well, and innovation acceleration, which is really innovation, execution skills.
You must have this widely developed, the centralized in the organization, and the, and the. And this is only achieved if you understand what those skills are, if you equip people with those square skills. But also, your organization has a very clear purpose.
Am a culture that is a line of that purpose, that you intentionally shape that culture. It should be a line of that purpose, which means that you have a strong set of core values that define your behaviors, align with that culture, aligned with that purpose, ally, with value creation for all. So, collaboration, innovation of value creation are the ultimate measurements of your eye BPM effectiveness on this maturity scale.
So let's go through here and show you a quick example.
This is an energy re-organization energy infrastructure organization that is embarking on this. I BPM journey started very high level. What is the first thing that we do it? We get with their sea level leaders, and we discuss, OK, what are the most critical process in our organization? How do we create value for our clients in this organization?
This is a very important discussion to be had with your senior leaders, because most of them, they don't know, or they have different opinions about what those, what are those value creation processes are, Warren, those core client facing processes for value creation. So, in this case, here, without getting too much into that, there was the green zone, they are shows you what they agree are most critical value creation processes for their organization.
And, down below, you'll have the supporting processes, which are important, but they are only there to support those client facing processes, and to decide you're gonna have your executive leadership processes. So, do this step first, Make sure you have alignment in your senior leaders, mind of, what are the most important value creation processes in your organization.
Now, this can be really tricky, because a lot of organizations are not process organizations. They may very well be project organizations where project skiing and different projects are king.
So, how do you do process ownership in a project driven organization? So, another important note to take here, Remember the project teams, they receive an apply process knowledge on the field.
They are there to implement new ideas that create value.
The process owners are looking, how to develop better ways of doing things across multiple processes and projects.
So, the connection here of intelligent business process management is really trying to translate this execution, excellence that we have, ensure process excellence and the process excellence into execution, excellence, and intelligent business process management. Is that interface, OK? It's another way of looking at that, specially if you're a project driven organization.
So, so wonderful. This is, this is all very interesting, shows there, but let's, let's get, you know, how do you implement this? Give me an example.
So I want to first talk about innovation for simplification as the background for all of this, so what is innovation for simplification? Innovation for simplification is simply the realization that we live in a very complex world, and it's very difficult to get started sometimes on anything, because there's so much complexity when you look at the details, right?
So, innovation for simplification is a mindset shift that you need to start with, and that mindset shift is that when you wonder what needs to be added to your assistance, and someone else makes a new request, remember that true perfection and value creation is only attained when there is nothing left to take out.
So, innovation for simplification is understanding the essence, so, you may if you have a lean background, you understand this very well. So, you say, OK? This is a concept of lean, right? Yes? But here's the problem. Why?
You should not just Rely on methodology alone because if you Because Don't think of it just being lean because you will not be successful if you don't if you if you could just be lean. You cannot start with lean, you know? What is the first thing that you need to start with for these innovations to create disproportional value?
It's not always the Lean concepts. You need to start with collaborative leadership skills.
So, before you go into any method, you bring collaboration first. Remember, this, Great, I BPM innovations is start with great collaborations and then they fall by elimination reduction and only then automation, and you may see some leaning there. But notice that we started ... great collaborations, then you eliminate you reduce. And only last you automate. Specific example on this, I have a billion dollar power plant and this billion dollar power plant inclusive, inclusive design. The procurement and construction on more than 120 different types of unique and complex valve control stations.
Well, someone said, you know, We should automate that because we're going to save a lot of money for automate that.
They put an automation team to work on this, and for three years, they got nowhere.
Why? Those are smart people, why they didn't get anywhere.
Well, they didn't get anywhere because they jump right into automation. What they're trying to do is to automate something that, when you look at details, can get quite complex. Even at a high level. This is how you design a valve control station at a high level, OK, 120 different types of designs that go for a process like this.
It doesn't matter the details of the process. You don't need to be technically savvy to know this, it doesn't matter.
The point here is that they tried to do to automate this process for three years Unsuccessfully.
Because 120 different people have reasons why they should have this automation, do the special thing for them.
Now, here's the catch, you may say, OK, so how do, how do you do this better?
We got 120 people to come into the room and say, OK, what can we do here? And, you know, very quickly, they say, oh, we can standardize on this.
Yeah, we kinda standardize on this, but they want 120 different standards. That's what they want. They want to standardize my way.
So, the importance of collaborative leadership, it was not until we got those folks to collaborate, to look at some Lean concepts and principles for innovation design. You say, Hey, let's look at the 80% design approach here. If we do it, if we do what needs to be done 80% of the time, can we standardize that? Because in the beginning, you couldn't standardize anything.
And then, by taking 8% design approaches, by taking collaborative leadership skills, approaches with the group, were able to have them agree on not 1, 6 basic designs that could standardize about not 100%, but about 80% of the design function. And then we did that for that collaboration, we're able to eliminate all the steps, because now we could standardize those. And now that we standardize those, we have a much simpler approach on six designs. That can be summarized in what you see here, and what you see here was agreed upon by the steam.
And in three months, we had a full automation of what you see here on the screen, and the automated to about 80% level on a software called plant vision. And now, the whole process was built on one design, on plant vision, and then after they put that design in the model, they could do the other 20%.
Customizations that only took an hour a few minutes to do.
We were doing the same process 20 times faster with less than half of the people that we usually had. By the way, we did not fire anybody. We, we repurpose their work to other areas of the business, and that's a cultural thing that we can talk about separately.
But keep this in mind, it's not about just applying Lean principles or six Sigma principles.
So this was about collaboration first, then eliminate, reduce, and automate in that order.
So, ladies and gentlemen, what matters?
Most ideas, methods, technologists, or people, certainly people, but the right people, and I want you to remember this, who are this right people?
This, right, people are people with purpose. They have passion. They have discipline, and they have resilience. And one day, I can tell you more about each one of these components, but that's the gist of it.
Now, keep in mind that this people, they don't work for Google, Facebook, or Tesla, OK? They work for you right now, and there are suffocating because there is no mechanism for them to align their individual purpose with the individual, the purpose of their work and for them to create value and be recognized for that.
So they are in your ranks right now.
It is your job to find who are the right people in your organization. You have to set up a meritocracy of ideas, Riff clear, execution mechanisms accessible to all of them.
And where you're going to see is that they're going to rise, And they're going to say, hey, I have a chance to fulfill my work, life harmony in this organization, And that's a beautiful thing.
Now, you know, I need to be equipped with skills.
I need to be equipped with skills of collaborative leadership. I need you have skills on innovation execution, and have the ability to take different perspectives at problems, because that is the essence of innovation.
So, we learn this approach as we are educated on this leadership, approaches and techniques, and we apply them to create value. Now, make no mistake, you cannot force people onto this because ultimately, they still must have courage and has the courage to act.
In the words of high ashes sun, training is no good, you must do.
So, you can put all the Enterprise Risk management pieces in place. And I, and I, and I applaud you to do that.
But that's not enough.
You even after you manage your risks, you must have courage. You must have courage as a professional. You must have courage as a leader.
Ladies and gentlemen, 100 years from now, you're going to be dead.
So make it meaningful right now, Have the courage to lead collaboratively to, to create value for yourself, for your organization, for your clients, and for society.
Now ultimately as leaders, our jobs is to create a meritocracy of ideas with clear execution mechanisms and create an environment in our organizations where these great people, and their great ideas can connect.
So make sure you take care of all of that.
It's a lot to deliver to you in less than 60 minutes, but there are a lot of components in here that you can start experimenting with, and you'd tell me later on, if it works or not.
If you want to follow our journey, just remember.
There are only two types of people who predict the future, those who don't know, and those who don't know that they don't know, including myself.
So, listen to what people say, pay more attention to what they do And what the great Enduring organizations do, they build a culture of excellence and innovation as their ultimate competitive advantage.
And this is my mission, and this is my purpose until the day that the lights go off for me.
So, if you're, as you follow my journey, connect on LinkedIn.
Joseph ..., Arizona, LinkedIn, you're going to see me probably more than 50 cross industry events.
And client work with more than 180 organizations, currently, accelerating excellence, innovation and transformation. But most important.
Working on meaningful, purposeful work with with organizations that want to create, and people want to create disproportional value for their professionals for their organization.
Force clients and society. So, thank you so much for the time.
I'm gonna change hats back from presenter two to conference host, and, in doing that, I will change my background back to conference host, And I want to thanks everyone who has been here with us today. You have been fantastic.
It's a one day focus event we had here on, on Intelligent Business Process Management, The questions that you asked throughout this four presentations were terrific. Show a great level of engagement show, a great level of.
Of, uh, understanding of the subject matter, from very practical perspective. And, we appreciate that.
We want to thank ..., our sponsor, for making this possible, and available to all of us at no cost on a global scale. Over 1300 registered participants will be able to take you to, to take advantage of this thought, leadership and industry expertise.
Reminder, as a register participant, you will be receiving a, an e-mail with a link and password for each one of those recorded sessions where you have a chance to rewind, play back, listen, and and, and get the insights directly from each one of our leaders.
Thank you very much for all the leaders, the cross industry leaders who presented today.
Thank you, Brian Raffled, the Conference Director for allow for making this happen and allowing all the species to come together and provide you with a good experience. Thank you, VJ Bashaw, this CEO of ..., for creating environments where great people and great ideas can connect. So, bye bye for now. Wherever you are in the world, have a great rest of your day. And connect on LinkedIn if you want to continue to follow our journey across multiple industries and the more than 20 countries. And we look forward to working with you, to accelerate excellence, innovation, and transformation.
And remember, nobody can predict the future, but together, we can create it.
Bye bye for now.
Founder & CEO,
Innovation & Excellence.
José Pires serves as the Global Excellence & Innovation (E&I) Leader for Andeavor Corporation, where he oversees the global identification, prioritization and execution of mission critical business improvements and innovations that add value to the company, business partners and external clients in multiple markets.
Prior to his current role, Pires held Excellence and Innovation leadership positions in large, global companies in the electronics (Sony), semiconductor (Cymer-ASML), food (Nestlé) and infrastructure (Black & Veatch) industries. Throughout his career, Pires developed and refined E&I as an award winning program for innovation, leadership development, strategy execution and value creation globally.
Pires is an advisory board leader and keynote speaker for several global conferences on innovation, operational excellence, leadership development, strategy execution, business transformation, customer engagement and growth acceleration.
He holds a Bachelor in Engineering Physics from the University of Kansas and a Master in Business Administration focused in Investment Banking and Entrepreneurship from the University of San Diego.
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July 11, 2022
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