IntroductiontoBusinessProcesses–PartI

LearningHowtoDevelop,Manage&ImproveBusinessProcesses

Outline  Introduction&ContextofBusinessProcessManagement  BusinessProcessManagementOverview  ProcessModeling  ProcessAnalysis  ProcessDesign  ProcessPerformanceManagement  ProcessTransformation  ProcessManagementOrganization  EnterpriseProcessManagement  BusinessProcessManagementTechnologies

Introduction&ContextofBusinessProcessManagement

WhatDrivesAnOrganizationtoChangeTheWayItDoesBusiness

LessonsLearnedFromLargeProcessImplementations

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Moreattentiontoprocessoptimization

Aligntocompanygoals

Understandingthesubjectarea

ImplementationofaMIS

OutsourceProjectManagementtoaThirdParty

Increaseinvestmentintraining

Greateremployeesinvolvement

Enforcechangesmoreeffectively

Identifyandcaptureproofofbenefitsandsaving

Avoidbig‐bangimplementations

KeyDriversForBusinessProcessManagement  SaveMoney–Dothingsbetterwithoptimizedprocesses

  Buildbetternewprocessesfaster  Knowwhatyouaredoing(rightorwrong)throughcurrentprocess

understanding  Getcontrolofparallelprocessesbyconsolidatingcoreprocesses  Getnon‐valueaddedworkthroughautomationofmanualprocesses  BusinessProcessOutsourcing

  Implementlargesoftwaresystemsbetter(ERPs)  Stayaheadofcompliance  Movefasterthroughscenariobuildingforagilityandpolicymanagement

BenefitsofBusinessProcessManagement

ReducedProcessCosts 10–15%

IncreasedQuality/ReducedNumberofErrors 20–30%

ReducedProcessThroughputTimes 10–30%

ReducedTrainingTime/Expenses 10–30%

ReducedNumberof(Internal)SupportRequests 15–30%

ReducedNumberofCustomerComplaints 20–30%

IncreasedForecastAccuracy 15–30%

HowDoOrganizationsImprove? Majorchangemuststartatthetop  Everyonemustbeinvolved  Effectivechangerequiresagoalandknowledgeofthecurrentprocess

  Changeiscontinuous  Changewillnotberetainedwithouteffortandperiodicreinforcement

  Improvementiscontinuous

SymptomsofPoorBusinessProcessDesign&Management

  Nostandardprocess/methodforaddressinghowtodefinebusinessrequirementsandwhentoimprovebusinessprocesses

  Whenautomationofprocessesiscommissioned,“Business”saysthattheydonotalwaysgetwhattheythinktheyhaveaskedfor

  Theprocessesusedtodocumentandcommunicatebusinessprocessesandrequirementsareneithereasyordocumented

  Ourbusinessprogramsfrequentlyexistinacultureofreactingtocross‐functionalproblems/emergencies

  IThasresponsibilityforcreatingandmaintainingbusinessprocessflows,businessrequirementsandbusinessrules

CommonProblemstoBusinessProcessManagement&Design

  Lackofanintegratedprocessforcapturingthebusinessdomain

  Techniquesthatareusedarenotconsistentlyapplied Wecannot/donotdifferentiatekeystakeholders’viewsanddifferentbusinessviews

 Weareworkingwithoutacommonlanguageacrossbusiness,ITandotherpartners/vendors

  Inadequaterootcauselevelbusinessprocessanalysisyieldsinadequatebusinessrequirementsandrulestofacilitateprocessoptimization/automation

FindingtheRightProject  Theprocessorprojectisrelatedtoakeybusinessissue  Youhave/cangetcustomerinputontheissue  Managementassignsthisprojectahighpriority  Processownerandkeystakeholdersaredefined  TheproblemisstatedasatargetorneedandNOTasolution  Thesponsorofthisprojectcancommittimeandresourcestotheproject

  Thebusinessprocess(es)willnotbechangedbyanotherinitiativeatanytimeinthenearfuture

  Focusonwhatismostcriticalandwhatcontributesthemost  Ensurethebenefitsofanimprovementprojectdonotdegradeovertime

CriticalSuccessFactors  Linkedtobusinessstrategiesandgoals  Linkedtocustomervalue  Abilitytoimplementincrementalvalueaddedchange  Abilitytotrackresultsandmeasuresuccess  Abilitytobealignedwiththebusiness

WhatDoSuccessfulProjectsHave  UnderstoodtheBusinessArchitecture–BusinessProcess,Metrics,StrategyandGoals

  Engagedstakeholdersanddefinedprocessownership  Takenaniterativeandincrementalapproach  Tackledtherightprojectattherighttime  Implementedinternal,externalstandardsandtherightlevelofgovernance

  Understoodtheroleofinformation  Incorporatedprocessimprovement  Achievebusinessresultswithaseriesofsmallsuccesses

DoNotIgnoreOrganizationalChange  Thefailuretomanagethehumansideofbusinesschangesisthemajorcontributortothereasonsprograms,projectsandinitiativesfail

 Organizationsmaynothavetheexperiencenecessarytomanagethespeedandcomplexityofthelarge‐scalechanges

 Managersarealltofrequentlyconcernedwithtactical,operationalissuesandhavenothadtimetoconsiderorganizationalchanges

ProcessAnalysiswithinServiceOrientations  ProcessDrivenIntegration

  ServicesBasedIntegration  Cutintegrationcostsandreducedevelopment

  NewBusinessInitiatives  Agility&Growth–NewProductsandServices  IncreasedDeliveryChannels

  ProcessImprovement  Optimizingbusinessprocesses  StraightThroughProcessing

  ITRegeneration  EnterpriseITArchitecture–AligningmorewiththeBusiness  LegacyReplacement

  ExtendingtheEnterprise  PartneringandB2B

IntelligentUseofBPM  PrioritizeIntelligentCutstoReduceOverallOperationalExpenses

  ProcessOptimization  StrongBPMteamscanquicklyexamineprocessesandsuggestchangestoeliminatewaste

  GoodBPMteamscanalmostalwaysidentifysomequickchangesthatwillsave10–30%

  Reorganizations  Changesinstatusalsorequirethatnewprocessesandbusinessrulesbeimplementedthroughouttheorganization

  AdditionalRegulation  Newregulationsrequirenewpracticesandnewbusinessrules

HowBPMFitsIntoAnERPDeployment

KnowledgeArea1–BusinessProcessManagement

  DefinestheBPMandprovidesthefoundationforexploringtheremainingknowledgeareas

  FocusesonthecoreconceptsofBPM  Keydefinitions  End‐to‐Endprocess  CustomerValue  NatureofCross‐FunctionalWork  ProcessTypes  ProcessComponents  BPMLifecycle  CriticalSkills  SuccessFactors

KnowledgeArea2–ProcessModeling  Includesthesetofskillsandprocesseswhichenablepeopletounderstand,communicate,measureandmanagetheprimarycomponentsofbusinessprocesses

  Covers  Skills,activitiesandkeydefinitions  Anunderstandingofthepurposeandbenefitsofprocessmodeling

  Discussionofthetypesandusesofprocessmodels  Tools,techniquesandmodelingstandards

KnowledgeArea3–ProcessAnalysis  Involvesanunderstandingofbusinessprocessesincludingtheefficiencyandeffectivenessofbusinessprocesses

  Covers  Purposeandactivitiesforprocessanalysis  Decompositionofprocesscomponentsandattributes,analyticaltechniquesandprocesspatterns

  Useofprocessmodelsandotherprocessdocumentationtovalidateandunderstandbothcurrentandfuturestateprocesses

  Processanalysistypes,toolsandtechniques

KnowledgeArea4–ProcessDesign  Intentionalandthoughtfulplanningforhowbusinessprocessesfunctionandaremeasured,governedandmanaged

  Involvescreatingspecificationsforbusinessprocesseswithinthecontextofbusinessgoalsandprocessperformanceobjectives

  Covers  Plansandguidelinesforhowworkflows  Howrulesareapplied  Howbusinessapplications,technologyplatforms,dataresources,

financialandoperationalcontrolsinteractwithotherinternalandexternalprocesses

  Processdesignroles  Techniquesandprinciplesofgooddesign  Commonprocessdesignpatterns  Compliance,executiveleadershipandstrategicalignment

KnowledgeArea5–PerformanceManagement  Formal,plannedmonitoringofprocessexecutionandthetrackingof

resultstodeterminetheeffectivenessandefficiencyoftheprocess  Usedtomakedecisionsforimprovingorretiringexistingprocessesand/or

introducingnewprocessesinordertomeetthestrategicobjectivesoftheorganization

  Covers  Keyprocessperformancedefinitions  Importanceandbenefitsofperformancemeasurement  Monitoringandcontrollingoperations  Alignmentofbusinessprocessandenterpriseperformance  Whattomeasure  Measurementmethods  Modelingandsimulation  Decisionsupportforprocessownersandmanagers  Considerationsforsuccess

KnowledgeArea6–ProcessTransformation  Addressesprocesschangeinthecontextofabusinessprocesslifecycle

  Covers  Processimprovement  Redesignandreengineeringmethodologies  Tasksassociatedwithimplementingprocess  Organizationalchangemanagementmethodologies,techniquesandbestpractices

KnowledgeArea7–ProcessOrganization  Addressestheroles,responsibilitiesandreportingstructuretosupportprocess‐drivenorganizations

  Covers  Whatdefinesaprocess‐drivenenterprise  Culturalconsiderations  Cross‐functional,team‐basedperformance  Businessprocessgovernance  Governancestructures  BPMCentersofExpertise/Excellence

KnowledgeArea8–EnterpriseProcessManagement  Drivenbytheneedtomaximizetheresultsofbusinessprocesses

consistentwithwell‐definedbusinessstrategiesandfunctionalgoalbasedonthesestrategies

  Processportfoliomanagementensuresthattheprocessportfoliosupportscorporateorbusinessunitstrategiesandprovidesamethodtomanageandevaluateinitiatives

  Covers  Toolsandmethodstoassessprocessmanagementmaturitylevels  RequiredBPMpracticeareaswhichcanimprovetheirBPMorganization

state  BusinessProcessFrameworks  ProcessIntegration–interactionofvariousprocesseswitheachother  Modelswhichtiesperformance,goals,technologies,peopleand

controlstobusinessstrategyandperformanceobjectives  Processarchitectureandenterpriseprocessmanagementbest

practices

KnowledgeArea9–BPMTechnology  BPMisatechnologyenabledandsupportedmanagementdiscipline

  Covers  Widerangeoftechnologiesavailabletosupporttheplanning,design,analysis,operationandmonitoringofbusinessprocesses

  Setofapplicationpackages,developmenttools,infrastructuretechnologiesanddata/informationstoresthatprovidesupporttoBPMprofessionalsandworkersinBPMactivities

  BPMstandards,methodologiesandemergingtrends