IntroductiontoBusinessProcesses–PartIII

LearningHowtoDevelop,Manage&ImproveBusinessProcesses

BusinessProcessManagementOverview

BPMLifecycle

ProcessPlanning&Strategy

AnalysisofBusinessProcesses

Design&ModelingofBusinessProcesses

ProcessImplementation

ProcessMonitoring&Controlling

ProcessRefinement

Culture&StrategyMethodologyInformationTechnologyProcessAlignmentProcessAwarenessProcessMeasuresProcessSponsorshipProcessResponsibilityProcessDefinitionOrganization

BPMLifecycle

ProcessPlanning&Strategy  BPMlifecyclebeginswithdevelopingaprocessdrivenstrategyand

planfortheorganization  SetsthestrategyanddirectionfortheBPMprocess  Planstartswithanunderstandingoforganizationalstrategiesand

goals  Designedtoensureacompellingvaluepropositionforcustomers  Planprovidesstructureanddirectionforcontinuedcustomer

centricprocessmanagement  ProvideafoundationforaholisticBPMapproachtoensurethe

alignmentwithorganizationalstrategyandtheintegrationofstrategy,people,processesandsystemsacrossfunctionalboundaries

  IdentifiesappropriateBPMorganizationalrolesandresponsibilities,executivesponsorship,goalsandexpectedperformancemeasuresandmethodologies

AnalysisofBusinessProcesses  Analysisincorporatesmethodologieswiththegoalofunderstandingthecurrentorganizationalprocessesinthecontextofthedesiredgoalsandobjectives

  Takesinformationfromstrategicplans,processmodels,performancemeasurements,changesintheenvironmentandotherfactorsinordertofullyunderstandthebusinessprocessesinthecontextoftheoverallorganization

Design&ModelingofBusinessProcesses  Focusontheintentional,thoughtfuldesignofhowend‐to‐endworkoccursinordertodelivervalue

  Documentthesequenceofactivities,includingthedesignofwhatworkisperformed,atwhattime,inwhatlocation,bywhatprocessactors,andusingwhatmethodology

  Defineswhattheorganizationwantstheprocesstobeandanswersthewhat,when,where,whoandhowquestionsofhowend‐to‐endworkisexecuted

  Ensuresthatthepropermanagementcontrolsandmetricsareinplaceforcomplianceandperformancemanagement

  Understandingtheprocesstypicallyinvolvesprocessmodelingandanassessmentoftheenvironmentalfactorswhichenableandconstraintheprocess

BusinessProcessModeling  Setofactivitiesinvolvedincreatingrepresentationsofanexisting(as‐is)orproposed(to‐be)businessprocess

  Providesanend‐to‐endperspectiveofanorganization’sprimary,supportingandmanagementprocesses

 Modelingisameanstoanendbutnotanenditself  Youmodeltogetresultsandreachconclusions

ProcessDiagrams,MapsandModels  Diagrams

  Processdiagramoftendepictnotationofthebasicworkflowofaprocess  Depictsthemajorelementsofaprocessflow,butomitstheminordetailswhich

arenotnecessaryforunderstandingtheoverallflowofwork  Maps

  Moreprecisionthanadiagram  Moredetailsaboutprocessandimportantrelationshipstootherelementssuch

asperformers,eventsandresults  Provideacomprehensiveviewofallofthemajorcomponentsoftheprocess

  Models  Representstheperformanceofwhatisbeingmodeled  Needsgreaterprecision,dataabouttheprocessandaboutthefactorsthat

affectitsperformance  Oftendoneusingtoolsthatprovidesimulationandreportingcapabilityto

analyzeandunderstandtheprocess

ProcessAttributesandCharacteristics  Attributesandcharacteristicsthatdescribetheproperties,behavior,purposeandotherelementsoftheprocess

  Processattributesarecapturedinatoolinordertoorganize,analyzeandmanageanorganization’sportfolioofprocesses

  Inputs/Outputs  Events/Results  ValueAdd  Roles/Organizations  Data/Information  Probabilities  Queuing  TransmissionTime  WaitTime

  ArrivalPatterns/Distributions  EntryRules  ExitRules  BranchingRules  JoinRules  Work/HandlingTime  Batching  Servers(Peopleavailableto

performtasks)

PurposeofProcessModeling  Amodelisrarelyacompleteandfullrepresentationoftheactualprocess  Focusonrepresentingthoseattributesoftheprocessthatsupport

continuedanalysisfromoneormoreperspectives

  Objectiveistocreatearepresentationoftheprocessthatdescribeitaccuratelyandsufficientlyforthetaskathand  Understandingthebusinessprocessthroughthecreationofthe

model  Creatingavisiblerepresentationandestablishingacommonly

sharedperspective  Analyzingprocessperformanceanddefiningandvalidatingchanges

  Tobemodelisanexpressionofthetargetprocessstateandspecifiestherequirementsforthesupportingresourcesthatenableeffectivebusinessoperations

ProcessMonitoringandControlling  Continuousmeasuringandmonitoringofbusinessprocessesprovidestheinformationnecessarytoadjustresourcesinordertomeetprocessobjectives

 Measuringandmonitoringalsoprovidescriticalprocessperformanceinformationthroughkeymeasurementsrelatedtogoalsandvaluetotheorganization

  Analysisofprocessperformanceinformationcanresultinimprovement,redesignorre‐engineeringactivities

ProcessRefinement  Implementstheoutputoftheiterativeanalysisanddesigncycle

  Addressesorganizationalchangemanagementchallenges

  Aimedatcontinuousimprovementandprocessoptimization

TypesofProcesses

PrimaryProcessesManagementProcesses

SupportProcesses

PrimaryProcesses  Primaryprocessesareend‐to‐end,cross‐functionalprocesseswhichdirectlydelivervalue

  Representtheessentialactivitiesanorganizationperformstofulfillitsmission

 Makeupthevaluechainwhereeachstepaddsvaluetotheprecedingstepasmeasuredbyitscontributiontothecreationordeliveryofaproductorservice

  Primaryprocessescanmoveacrossfunctionalorganizations,acrossdepartmentsorevenbetweenenterprisesandprovideacompleteend‐to‐endviewofvaluecreation

SupportProcesses  Supportprocessesmanagingresourcesand/orinfrastructurerequiredbyprimaryprocesses

  Differentiatoristhatsupportprocessdonotdirectlydelivervalue  Doesnotmeanthattheyareunimportanttoanorganization

  Examplesofsupportprocessesincludeinformationtechnologymanagement,facilitiesorcapacitymanagementandhumanresourcemanagement

  Supportprocessesaregenerallyassociatedwithfunctionalareas

ManagementProcesses  Usedtomeasure,monitorandcontrolbusinessactivities  Ensurethataprimaryorsupportingprocessmeetsoperational,financial,regulatoryandlegalgoals

  Donotdirectlyaddvalue  Necessaryinordertoensuretheorganizationoperateseffectivelyandefficiently

ProcessActivities  ValueAdded–contributetotheprocessoutputinapositiveway

  Handoff–passcontroloftheprocesstoanotherdepartmentororganization

  Control–assurethattheprocessesbehavewithindesiredtolerancesorspecifyavaliditycheckpoint

BPMCriticalSuccessFactors

DefineOrganizationWideBusinessProcess

ValueChains

ExecutiveSponsorship/Governance&

InstitutionalPractice

StandardizeBusinessProcesses

MeasureProcessChainPerformance

BusinessStrategy

BPMCriticalSuccessFactors  StandardizeBusinessProcesses

  Adoptcommondesign/re‐engineeringmethodology  Documentprocesses  Manageprocessdiversity

  ExecutiveSponsorship/Governance&InstitutionalizePractices  Providecontinuousimprovement  Manageprocessgovernance  Enablechangemanagement  LeverageBPMtools

  DefineOrganizationWideBusinessProcessValueChains  Maptheorganization’scoreactivities  Assignexecutiveresponsibilityfor/sponsorshipofprocesschains

  MeasureProcessChainPerformance  Managetoprocessmeasuresandchainsofaccountability

AlignmentofStrategy,ValueChain&BusinessProcess

 MostsuccessfulorganizationsimplementingBPMpayattentiontothealignmentofbusinessstrategy,valuechaindefinitionsandbusinessprocesses

  BPMreliesonkeybusinessstrategiesthatsettheprimarydirectionoftheenterprise  Valuepropositionsforgoodsandservicesdelivered

  Businessstrategyleadstoenterpriseandbusinessunitgoalsasthebasisforactionplansandbusinesstactics

Goals  Businessgoalsaremostoftenanoutputofanorganizationsstrategicplanningefforts  Typicallydecomposedtoincludefunctionalgoalswhichalignanorganization’sfunctionalareastooverallstrategy

  Processgoalsalignbusinessprocesseswithoverallorganizationstrategy

ExecutiveSponsorship/Governance  Assigningexecutiveleadershipresponsibilitytooverseetheperformanceofkeyprocessesisanindicatorofmaturityandseriousness

  Performanceofaprocessismeasuredwithaccountabilityfallingundertheexecutiveleadershipandreportedthroughouttheenterprise

  Importanttohaveorganizationaldisciplinetoutilizemethodologiestodocument,store,manageandcontinuouslyimprovethebusinessprocesses

  IncludesgovernancemechanismstosupportBPMandassociatedtools

  Institutionalizedacrossallfunctionalareasinordertooptimizetheimpactonallvaluechainperformance

ProcessOwnership  SuccessfulBPMimplementationsrecognizethattheroleofaprocessowneriscritical

  Processownerisresponsiblefortheentireend‐to‐endprocessacrossfunctionaldepartments

  Successofthisroledependsontheauthoritytheindividualhastocontrolthebudgetandmakedecisionsthateffectthedevelopment,maintenanceandimprovementofthebusinessprocess

Metrics,MeasuresandMonitoring Managementrequiresmeasurement  Businessprocessmeasurementandmonitoringprovidescriticalfeedbackonprocessdesign,performanceandcompliance

  Necessarytomeasureprocessperformanceintermsofavarietypossiblemetricsrelatedtohowwelltheprocessmeetsitsstatedgoals

InstitutionalPractices  EffectiveattainmentofBPMsuccessfactorstocreatevalueforanorganizationdependson  Organizationalpractices  Masteryofconceptsandskillsbyindividualswithaccountabilityformanagingbusinessprocesses