During the past year, business performance management (BPM) consulting has developed into a strong business, and it's one that is continuing to grow. Firms in this space are helping organizations through all phases of a BPM software implementation -- from goal setting to vendor selection to user education to business process improvement to development of custom software.

In the past, most companies pursuing better BPM systems and processes chose to go it alone in most stages of the project. The thinking was that outside of the actual rollout of the application, consulting was an added and nonessential expenditure. If the company had enough able bodies in IT and finance to fill out a project team, managers assumed they were all set. What has prompted the recent change in thinking is the data that has been coming in from those who ventured into BPM implementations on their own. Recent surveys have highlighted the fact that these projects tend to cost more and take longer than anticipated. (See, for example, Is BPM Performing? in the June issue of BPM Magazine.) In addition, they are falling short of fully delivering on buyers' expectations. It seems that most users of BPM are happy they moved forward with it; they just wish the trip had been a smoother ride.

Businesses large and small are learning from the mistakes of their predecessors and engaging BPM experts to assist with many aspects of their projects. The typical organization now looks for help in determining its requirements, selecting a vendor, and then deploying the solution. Companies that are implementing a dashboard as part of their BPM system are also likely to seek guidance in the development of their key performance indicators (KPIs).

As demand for BPM consulting grows, so does the number of providers with a focus in this area. Many large business and technology consultancies have recently added performance-management-specific practices. Some business intelligence (BI) and data warehousing consultants, who provide help with the building blocks of BPM, have added or retrained staff to focus on BPM. And firms that specialize in performance management have been growing and broadening the range of services they offer. More and more firms consult on both the technology and the business elements of BPM. In some cases, vendor-aligned implementation firms have merged with management/strategy firms to create one-stop shops.

The growing number of options should ultimately benefit buyers of BPM consulting, but it complicates the selection process. Maybe that's why companies' method of searching for the right consultant is evolving, as well. Businesses used to look to work with service providers they had had success with on previous projects. But they are now realizing that they need to find someone whose depth of experience in BPM can mitigate the project's risks and shorten its timeline. As a result, the search for a consultant has become more formal. Many companies today are going through an RFP process with consulting firms, a process that used to be reserved primarily for software vendor selection. Using guides like this one, they select a handful of consulting firms that seem to fit the bill and send out RFPs. Generally, a committee reviews the replies, follows up with phone and/or on-site discussions, and then selects the most experienced consultant at the right price.

This guide is designed to reduce the confusion that often surrounds the consultant selection process and to help readers put together a shortlist of consultants for consideration.

Key to the Guide

All data in this guide was collected directly from the consulting firms by BPM Partners. The only firms included are those that completed a survey which BPM Partners distributed. See the next page for a list of firms that did not participate.

Other than the comments section, we have not edited this material. We cannot vouch for its accuracy. A casual perusal of the following pages will reveal that many consulting firms claim to do everything, everywhere. As with any other significant purchase, you should do additional research and check references before making a decision. Use this guide as just that -- a guide and starting point in your search for the ideal consulting partner.

CLICK HERE TO DOWNLOAD A PDF FILE OF THE 2005 BPM CONSULTING GUIDE

Vendor Categories:

• MANAGEMENT/STRATEGY CONSULTING FIRMS. These firms typically educate, assess, advise, guide, and recommend. Although some also implement software, that is not their area of focus. Key attributes to look for are senior consultants with depth and breadth of experience in BPM, combined with objectivity and vendor neutrality.
• IMPLEMENTATION CONSULTING FIRMS. These firms either build custom solutions from BPM tools or specialize in implementing packaged BPM applications. They usually provide basic system design and implementation project management services, as well. Look for local resources with extensive experience working with the particular product you have selected. For the most popular BPM products, implementation consulting is a highly competitive market, so many organizations can price shop.

Reseller:

This section indicates whether you can purchase software products directly from the consulting firm.

Service Area:

This section identifies the geographies in which the consulting firm does business, not necessarily where its offices are located.

Services Offered:

• IMPLEMENTATION OF PACKAGED APPS. Hands-on implementation and customization of packaged BPM applications.
• CUSTOM PROGRAMMING. Coding a solution from tools or a programming language.
• BPM TRAINING. User education, either on a specific product or on BPM principles and practices.
• FINANCIAL PROCESS REVIEW. Assessment, analysis, and benchmarking of finance business processes.
• COMPLIANCE ADVISORY SERVICES. Review and recommendations in the use of BPM products to meet government requirements.
• REQUIREMENTS DEFINITION. Collection and/or analysis and prioritizing of BPM needs.
• KPI DEVELOPMENT. Utilization of best practices to facilitate strategic discussion to determine key performance indicators.
• IT ASSESSMENT. Analysis of IT people, processes, and systems in terms of their readiness for BPM.
• ROI/BUSINESS CASE DEVELOPMENT. Production of materials to help justify funding for the project.
• STRATEGIC BPM ROAD MAP. Analysis of current state, discussion of desired state, development of road map to get there.
• VENDOR SELECTION. Methods, tools, and expertise to identify which vendor is the best fit.
• ENGAGEMENT MANAGEMENT. Overall project management -- i.e., a project manager of project managers -- which is required for large and/or complex BPM initiatives.

BPM Components:

This section identifies which areas of BPM the firm provides services for.

Methodologies Supported:

This section identifies which common industry methodologies the firm works with.

Related Technologies and Disciplines:

• BUSINESS INTELLIGENCE TOOLS. Selection and/or implementation of pure BI tools in support of BPM.
• DATA WAREHOUSING. Design and/or implementation of data warehouses in support of BPM, separate from the BPM datamart.
• METADATA/MASTER DATA/ENTERPRISE DIMENSION MANAGEMENT. Specialized service to help with the coordination of data dimensions across multiple systems, which is a common BPM challenge.
• BUSINESS PROCESS MANAGEMENT. A separate but related discipline focused on the optimization of individual processes.

Following is a list of additional BPM consulting firms that were unable to participate in our 2005 buyers guide.

Acceles

Accenture

Alvarez & Marsal

Analytic Solutions Know-How

Answerthink Inc.

Application Partners LLC

Balanced Scorecard Collaborative

Born

Bywater

Constructive Consulting Ltd.

Dataskill

GRT Corp.

HLB Gross Collins PC

IBM Business Consulting Services

iOLAP Corp.

ISA Consulting

Knightsbridge

Parson Consulting

PCMS Datafit Inc.

Pragmatek

SandPointConsulting Inc.

Craig Schiff is CEO of BPM Partners, a vendor-neutral advisory services firm that helps companies maximize the return on their BPM investments.