Business Process Management Approach


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This deck provides a high-level framework to implement business process redesign within a business transformation initiative. It shows how to establish the team, define the approach, and identify some of the deliverables within this track of work.

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Business Process Management Approach

  1. 1. Building a Common Understanding of Business Process Management What is Business Process? A business process is a set of related activities with a defined input and output that provides value to its customers. What is the value of Business Process Management (BPM)? BPM not only improves profitability, but it actually helps create competitive advantage for companies. How? By using BPM, an organization can standardize processes and measure key activities for continuous improvement. What is the industry standard for business process management? The Business Process Management Institute first developed the standards for the Business Process Model Notation (BPMN) in the 1990’s. Merging with the association of Business Process Management Professionals (ABPMP) they define the certification standards for the Certified Business Process Management Professional (CBMP). Key stakeholders and project team members need a common understanding of business process management along with the governing standards that will be used. 1/4/2014 2
  2. 2. Creating the Business Process Management Framework for the Cloverleaf project How will Business Process Management fit with the project? Structured Expert Method for Business Analysis (SEMBA) is a methodology consisting of a clear framework grounded in proven architectural approaches, enriched with business process management principles and addressing the effective use of subject matter expertise. What value does SEMBA Provide to the Cloverleaf project? SEMBA provides the link between business process modeling, business analysis, software application implementation, and data management. The Business Process Management track of work should be part of the ePMO to identify opportunities within the project as well as identifying potential opportunities and conflicts with other large-scale change initiatives. 1/4/2014 3
  3. 3. Structuring Business Process Management into the Initiative Each Level 2 process has dedicated resources that is centered around the process owner. Marketing Lead Customer Svc Lead SME’s Each wheel identifies the following: Customer Marketing/ Service Sales Finance Lead Finance Business Project Mgt Lead Requirements/ Business Analysis Change Agents Organizational Change Mgt. Business Process Owner WEB/Sys Integration ISPM • The name of the process Business Process Compliance Lead • Work stream lead name BPM Lead Infrastructure Testing BIA App SMEs Tables App SMEs Tables • List of key activities / functions • List of technical applications • List of application modules Technical Project Mgt Deployment App Dev • High-level description of the process Solution Architecture • Listing of interfaces App SMEs Vendors Domain / App Archs To ensure success, the project team is organized around core processes to share knowledge and to efficiently manage the project in focused teams.
  4. 4. Structured Expert Method Business Analysis (SEMBA) The framework that integrates Business Process Management with the project Information / Knowledge Application Landscape Organizational Structure / Job Design Migration Design Business Process To-Be Design Business Context As-Is Understanding Change Vision and Scope Analysis and Design Phase Requirements Engineering Using its full capabilities, This framework delivers a solid design of the new (To- Be) situation covering the business context, the business processes and the possible consequences to the information and IT systems. SEMBA is a product of Capgemini Consulting 1/4/2014 5
  5. 5. Structured Expert Method Business Analysis Linkages 6
  6. 6. Business Process Levels Provide Structure Using BPMN Industry Standards the process levels provide alignment and integration with other tracks of work within the project Level 1:Strategic – Identifies the value chain in the organization Level 2: Tactical Level – Identifies the high-level process Level 3: Operational Level – Identifies the process activities and tasks. Level 4: Functional Level – Identifies the work steps and procedures Each level within the process pyramid provides greater granular detail and emphasizes the constitution of links between activities and the transformation that takes place within the process. 1/4/2014 7
  7. 7. Business Process Levels Provide Drill Down and Roll Up Capabilities and Show Relationships to other Processes 1 Value Chain Process Groups 2 Process Level A value chain is a chain of primary activities that a business performs in order to deliver a valuable product or service for the market. A process group contains one or more similar process that are unique to themselves. Process / Sub-processes contain a set of related activities that provide value to the customer. Sub-Process Level 3 Activity Level Task Level 4 An Activity is a major unit of work to be completed in achieving the objectives of a process. It has a precedence relationship with other activities. A Task is a single work event. Work Steps / Procedures Work Steps / Procedures are components of a task. KPI’s / SLA KPI’s – Key Performance Indicators define Quality SLA’s – Service Level Agreements define time The ability to be innovative and quickly adapt to change can be easily managed by understanding the relationships and monitoring the operational performance. 1/4/2014 8
  8. 8. Alignment of Business and Technical Requirements at Each Level of the Process. BUSINESS TECHNOLOGY Architecture principles Products Services e.g. Financing options e.g. Lease agreements, De e.g. SOA Policies e.g. no cards to under-ages 1 High level Business Requirements Performance Metrics e.g. Accommodate as-is interest rate calculations Business Continuity / Disaster Recovery Planning Specific technologies to use (or not use) e.g. WebSphere Infrastructure Technical Compliance Detailed BRQs e.g. specific threshold for interest rate calculation 2 Taxonomy and Folksonomy of content Org. Structure Job Design Business rules SLA’s Competencies Scripts or work steps KPI’s 3 4 System components supporting each process step Technical Support Logical interfaces, configuring / functional parameters , SLAs Functional Parameters Activities at each level need to be aligned and sequenced to ensure proper integration 9
  9. 9. Using the Structured Expert Method Business Analysis (SEMBA) in the Project in the Cloverleaf Project framework DEFINE ANALYZE DESIGN Test IMPLEMENT Architecture System Development Application Implementation Business Issue Data / Information Management Business Context and Scope Requirements Management Testing Business Transformation and Change management Program / Project management Implemented change
  10. 10. Level 1 Process – Strategic – Value Chain This illustrated example shows the five stages in this organizations value chain and the relationship to the corresponding process groups. The Customer Experience Lifecycle Approach Target Customer Approach Target Customer (ATC) Customer Orders Product (COP) Customer Orders Product (COP) Customer Consumes Service (CCS) Customer Has Question (CHQ) Bill Day Arrives (BDA) Customer Pays (CP) Customer Did Not Pay (CDNP) Simple diagrams aid in describing the processes that will impact certain parts of the value chain. 1/4/2014 11
  11. 11. Level 1 Process – Strategy - Value Chain shown with Process Groups Example of a Credit Card Value Chain and Process Groups Functions that are out of scope of the project and that will not change are shaded to assist key stakeholders and project team members understand the impact and relationships. 1/4/2014 12
  12. 12. Level 2 – Tactical - Processes Shows how high-level endto-end work flows Sub-processes are linked together and defined by functions. High level decisions are identified. Example Processes defined within the white outlined boxes indicate where the operation is performed. Processes have their own specific SLA’s and KPI’s where metrics can be defined. 1/4/2014 13
  13. 13. Level 3 Process Maps Show Activities and Tasks within the SubProcess. Activities and Tasks are displayed in swim lanes to separate roles, identify decisions, hand-offs, and systems used to support the process. Industry standard symbols are used to aid in understanding. Triggering events use different symbols to determine the path of the workflow. Colors are used to differentiate the type of event. 1/4/2014 14
  14. 14. Level 4 – Functional – Work Steps, Procedures, and Performance Standards The functional requirements for the business may include: • Work Steps • Procedures • Check lists • Templates • Other Job Aids Performance measures based upon defined metrics should be used as needed to assess the effectiveness of the process (not the individuals). Not all tasks require or need documented procedures, work steps, or training aids. These are only necessary when standardization or a level of quality is needed. 1/4/2014 15
  15. 15. Types of Deliverables Common in Business Process Management Current State • Business Process Approach Plan • SEMBA Guideline Requirements Management Plan • As-Is Understanding • As-Is Process Definition and Narrative • As-Is Process Map • Current state Metrics, measures (KPI’s and SLA’s) • Risks and Assumptions To-Be State • Business Capability Assessment • To-Be Process Definition and Narrative • To-Be Process Map • To-Be metrics and measures • Risks and Assumptions • Migration Strategy and Plan • Procedures and Work Steps Analysis and Planning • Business Best Practices Assessment Report • Gap Analysis • Gap Closure Plan • SWOT Analysis • Future State Capability Requirements • Business Options Report • Value Realization Approach Plan • High-level Capability Release Plan The BPM team relies upon input from other tracks of work, and provides outputs to other tracks of work. 1/4/2014 16
  16. 16. Capability Maturity Management: Our ability to effectively transition and manage change is based in part upon the current capability from the business processes. Level 5: Focus on continually improving process performance through both incremental and innovative technological improvements. • Focus: Enterprise innovation and continuous improvement • Quantitative process-improvement objectives for the organization are established, continually revised to reflect changing business objectives, and used as criteria in managing process improvement. Level 4: Sub-processes are selected that significantly contribute to overall process performance. • Focus: Quantitative measures • These are controlled using statistical and other quantitative techniques based on the needs of the customer, end users, organization, and process implementers. It is important to identify and understand the current capability level because it will limit the organization’s ability to implement and execute the desired change. Level 3: Processes are well characterized and understood, and are described in standards, procedures, tools, and methods. • Focus: Standardization • Processes are typically described in more detail and more rigorously than at maturity level 2. Level 2: An organization has achieved specific and generic goals. • Focus: Selective project management • The projects of the organization have ensured that requirements are managed and that processes are planned, performed, measured, and controlled. Level 1: Processes are usually ad hoc and chaotic. • Focus: Unstructured and informal • The organization usually does not provide a stable environment. Capability Maturity Model Integration (CMMI)
  17. 17. Definitions of the levels and Scope ofBusiness Process Change Business Process Improvement: Incremental changes to process levels at the task level. It is a systematic approach to closing of process or system performance gaps through streamlining and cycle time reduction, and identification and elimination of causes of poor quality, process variation, and non-value-adding activities. Metrics and measures are used to identify problem areas. This is generally considered an on-going event in mature organizations. Business Process Alignment: Specific changes to the defined business process that incorporate the technical functionality that will enhance the business process. Automation of manual tasks; integration of systems to share information across applications; collaboration enhancements between work groups or employees; and reporting and analysis of information to make informed decisions are some of enhancements to the existing process. Business Process Redesign: Major changes to operational level process or sub-process. This could also be limited to a single business unit, or functional area often driven by technology, merger, acquisition, or divestiture. Business Process Reengineering: The radical reinventing of how business is performed. The reengineering generally occurs at the strategic level. This level of change generally occurs when the organization wants to take a new approach to business in ways that is unlike the rest of the industry. Business Transformation: A major restructuring and realignment of business processes, people / organization, technology, and information / knowledge management to meet new business performance requirements. 1/4/2014 18
  18. 18. References: Business Process Management Institute Business Process Management Professionals (ABPMP) Certified Business Process Management Professional (CBMP) Structured Expert Method Business Analysis Capability Maturity Model Integration (CMMI) For additional information contact: George B. Lampere, Ph.D. 1/4/2014 19