Introduction to Business Processes - Part III
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The document provides an overview of Business Process Management (BPM), detailing its lifecycle, planning, analysis, design, monitoring, and refinement processes. It emphasizes the importance of aligning strategies with business processes and defining roles and responsibilities, while focusing on continuous improvement and performance measurement. Additionally, it highlights the necessity of effective governance, process ownership, and institutional practices for successful BPM implementation.
Introduction to Business Processes - Part III
- 3. BPM Lifecycle Process Planning & Strategy Culture & Strategy Methodology Information Process Analysis of Technology Refinement Business Processes Process Alignment Process Awareness Process Measures Process Sponsorship Process Design & Modeling Process Monitoring of Business Responsibility & Controlling Processes Process Definition Organization Process Implementation
- 5. Process Planning & Strategy BPM lifecycle begins with developing a process driven strategy and plan for the organization Sets the strategy and direction for the BPM process Plan starts with an understanding of organizational strategies and goals Designed to ensure a compelling value proposition for customers Plan provides structure and direction for continued customer centric process management Provide a foundation for a holistic BPM approach to ensure the alignment with organizational strategy and the integration of strategy, people, processes and systems across functional boundaries Identifies appropriate BPM organizational roles and responsibilities, executive sponsorship, goals and expected performance measures and methodologies
- 6. Analysis of Business Processes Analysis incorporates methodologies with the goal of understanding the current organizational processes in the context of the desired goals and objectives Takes information from strategic plans, process models, performance measurements, changes in the environment and other factors in order to fully understand the business processes in the context of the overall organization
- 7. Design & Modeling of Business Processes Focus on the intentional, thoughtful design of how end‐to‐ end work occurs in order to deliver value Document the sequence of activities, including the design of what work is performed, at what time, in what location, by what process actors, and using what methodology Defines what the organization wants the process to be and answers the what, when, where, who and how questions of how end‐to‐end work is executed Ensures that the proper management controls and metrics are in place for compliance and performance management Understanding the process typically involves process modeling and an assessment of the environmental factors which enable and constrain the process
- 8. Business Process Modeling Set of activities involved in creating representations of an existing (as‐is) or proposed (to‐be) business process Provides an end‐to‐end perspective of an organization’s primary, supporting and management processes Modeling is a means to an end but not an end itself You model to get results and reach conclusions
- 9. Process Diagrams, Maps and Models Diagrams Process diagram often depict notation of the basic workflow of a process Depicts the major elements of a process flow, but omits the minor details which are not necessary for understanding the overall flow of work Maps More precision than a diagram More details about process and important relationships to other elements such as performers, events and results Provide a comprehensive view of all of the major components of the process Models Represents the performance of what is being modeled Needs greater precision, data about the process and about the factors that affect its performance Often done using tools that provide simulation and reporting capability to analyze and understand the process
- 10. Process Attributes and Characteristics Attributes and characteristics that describe the properties, behavior, purpose and other elements of the process Process attributes are captured in a tool in order to organize, analyze and manage an organization’s portfolio of processes Inputs/Outputs Arrival Patterns/Distributions Events/Results Entry Rules Value Add Exit Rules Roles/Organizations Branching Rules Data/Information Join Rules Probabilities Work/Handling Time Queuing Batching Transmission Time Servers (People available to Wait Time perform tasks)
- 11. Purpose of Process Modeling A model is rarely a complete and full representation of the actual process Focus on representing those attributes of the process that support continued analysis from one or more perspectives Objective is to create a representation of the process that describe it accurately and sufficiently for the task at hand Understanding the business process through the creation of the model Creating a visible representation and establishing a commonly shared perspective Analyzing process performance and defining and validating changes To be model is an expression of the target process state and specifies the requirements for the supporting resources that enable effective business operations
- 12. Process Monitoring and Controlling Continuous measuring and monitoring of business processes provides the information necessary to adjust resources in order to meet process objectives Measuring and monitoring also provides critical process performance information through key measurements related to goals and value to the organization Analysis of process performance information can result in improvement, redesign or re‐engineering activities
- 13. Process Refinement Implements the output of the iterative analysis and design cycle Addresses organizational change management challenges Aimed at continuous improvement and process optimization
- 14. Types of Processes Management Primary Processes Processes Support Processes
- 15. Primary Processes Primary processes are end‐to‐end, cross‐functional processes which directly deliver value Represent the essential activities an organization performs to fulfill its mission Make up the value chain where each step adds value to the preceding step as measured by its contribution to the creation or delivery of a product or service Primary processes can move across functional organizations, across departments or even between enterprises and provide a complete end‐to‐end view of value creation
- 16. Support Processes Support processes managing resources and/or infrastructure required by primary processes Differentiator is that support process do not directly deliver value Does not mean that they are unimportant to an organization Examples of support processes include information technology management, facilities or capacity management and human resource management Support processes are generally associated with functional areas
- 17. Management Processes Used to measure, monitor and control business activities Ensure that a primary or supporting process meets operational, financial, regulatory and legal goals Do not directly add value Necessary in order to ensure the organization operates effectively and efficiently
- 18. Process Activities Value Added – contribute to the process output in a positive way Handoff – pass control of the process to another department or organization Control – assure that the processes behave within desired tolerances or specify a validity checkpoint
- 19. BPM Critical Success Factors Business Strategy Define Organization Wide Business Process Value Chains Executive Sponsorship/ Governance & Institutional Practice Standardize Business Processes Measure Process Chain Performance
- 20. BPM Critical Success Factors Standardize Business Processes Adopt common design/re‐engineering methodology Document processes Manage process diversity Executive Sponsorship/Governance & Institutionalize Practices Provide continuous improvement Manage process governance Enable change management Leverage BPM tools Define Organization Wide Business Process Value Chains Map the organization’s core activities Assign executive responsibility for/sponsorship of process chains Measure Process Chain Performance Manage to process measures and chains of accountability
- 21. Alignment of Strategy, Value Chain & Business Process Most successful organizations implementing BPM pay attention to the alignment of business strategy, value chain definitions and business processes BPM relies on key business strategies that set the primary direction of the enterprise Value propositions for goods and services delivered Business strategy leads to enterprise and business unit goals as the basis for action plans and business tactics
- 22. Goals Business goals are most often an output of an organizations strategic planning efforts Typically decomposed to include functional goals which align an organization’s functional areas to overall strategy Process goals align business processes with overall organization strategy
- 23. Executive Sponsorship/Governance Assigning executive leadership responsibility to oversee the performance of key processes is an indicator of maturity and seriousness Performance of a process is measured with accountability falling under the executive leadership and reported throughout the enterprise Important to have organizational discipline to utilize methodologies to document, store, manage and continuously improve the business processes Includes governance mechanisms to support BPM and associated tools Institutionalized across all functional areas in order to optimize the impact on all value chain performance
- 24. Process Ownership Successful BPM implementations recognize that the role of a process owner is critical Process owner is responsible for the entire end‐to‐end process across functional departments Success of this role depends on the authority the individual has to control the budget and make decisions that effect the development, maintenance and improvement of the business process
- 25. Metrics, Measures and Monitoring Management requires measurement Business process measurement and monitoring provides critical feedback on process design, performance and compliance Necessary to measure process performance in terms of a variety possible metrics related to how well the process meets its stated goals
- 26. Institutional Practices Effective attainment of BPM success factors to create value for an organization depends on Organizational practices Mastery of concepts and skills by individuals with accountability for managing business processes