The Paradigm approach to business process design and re-engineering.

1. Introduction to
Business
Process
Engineering
Para-VENT

2. Agenda
INTRODUCTION
OVERVIEW
DESCRIPTION OF
STAGES AND ACTIVITIES
CONCLUSION

3. INTRODUCTION

4. The Industrial Revolution
• Standardization of tasks
• Production lines
• Specialization of workers
• Products with long lives
• High levels of inventory
• Hierarchical structure

5. CONTEXT OF THE TIMES
• STABLE MARKETS
• LIMITED TECHNOLOGICAL CHANGE
• DEMAND EXCEEDS OFFER
• CLIENTS NOT OVERLY DEMANDING
• LIMITED COMPETITION
• PRODUCTS WITH LONG
LIFE CYCLE
• GOVERNMENTAL
PROTECTIONISM

6. Today’S Context
• Globalization of markets
• High quality is a must
• Consumers with high demands
• Offer greater than demand
• Short product life cycle
• High level of technological change
• Declining economy in the western world

7. A “Function” Based Organization
Validation Delivery
Production
Product
Demand

8. The Problems
• Client relegated to the background
• Based on tasks, activities, procedures and
standards
• Difficult to change
• Slow reaction time
• Bureaucratic
• Uneven quality
• High level of overhead

9. Evolving Towards a “Process” Based
Organization
Validation Delivery
Production
Product
Demand
Service
Product point
Validation
LIFTING OF CONSTRAINTS
Demand
Delivery
Production

10. FUNCTIONAL SILOS
C
D
A B
E F
“ BUSINESS PROCESSES”
A B C F H

11. BUSINESS PROCESSES ?
• Set of activities
• Repeatable
• Product or service
• For customers
• Have participants
• Measurable MISSION
OBJECTIVES
• Business objective PRIORITIES

12. Change of Perspective
• FOCUS ON CUSTOMER vs.
BUREAUCRACY
• PRODUCT instead of FUNCTION
• EFFICIENCY vs. EFFECTIVENESS
• ROLES AND RESPONSIBILITIES
vs. TASKS & ACTIVITIES
• SIMPLICITY vs. COMPLEXITY
• LEADERSHIP vs. MANAGEMENT
• FOCUS ON BUSINESS vs.
TECHNOLOGY

13. OVERVIEW

14. Business Process Engineering
Objectives &
Priorities
RETHINK
RESTRUCTURE
REVIEW
REDESIGN
REDEFINE
Revised processes
REQUESTION
Current processes
Technological
opportunities

15. Areas to Address
• Business
• Clients and products
• Infrastructure and logistics
• Organizational structure and culture
• Information
• Human resources
• Procurement and suppliers
• Management systems

16. HOW? Domains of Change
Business
Management Customer
Systems &
Product
Infrastructure
Materials
& Suppliers &
Logistics
Organizational
Human
Structure &
Resources
Culture
Information

17. HOW?
AN ITERATIVE FOCUSED APPROACH
Business
Management
Systems Customer
....
&
Product
Stage 3
Stage 2
Materials
Infrastructure
Stage 1
& Suppliers
&
Logistics
BUSINESS
Human
CUSTOMER
Resources
Organizational
CURRENT
Structure &
Information Culture
TARGET
STRATEGY
TRANSITION
IMPLEMENTATION

18. Metrics
Products &
Resources Means Reactions
services
consumed used obtained
delivered
Present
processes
Improved
inputs outputs
processes
New processes
QUALITY
ECONOMY VALUE
TIME

19. Measuring Business Processes
• ECONOMY (prices, fixed costs and variable costs, etc.)
• TIME (elapsed time, wait time, production time, lost time, etc.)
• QUALITY (precision, innovation, aesthetics, simplicity, robustness,
quality of finish, volume, purity, etc.)
• VALUE (perception of client, value of product, value of activities)

20. Value of Change:
Example: Car Repair
Metrics
QUALITY TIME FINANCIAL
Domains
BUSINESS Profit Margin
CUSTOMER/ Completeness
Elapsed Price
PRODUCT Longevity
INFRA- Availability
Currency
STRUCTURE Throughput
SUPPLIERS Accuracy Restock Time Unit Cost
HUMAN Knowledge Punctuality
Productivity
Attendance
RESOURCES Skills

21. Why?
• To increase sales
• To increase market share
• To increase profits
• To increase quality
• To take advantage of new opportunities
• To survive

22. Why in Government ?
TRANSFORM
GOVERNMENTAL
ORGANIZATION
PRIVATIZE

23. HOW? TYPES OF CHANGE
CONTINUOUS
C
h
a
n
g
e INCREMENTAL
RADICAL
Time

24. TYPES OF PROJECTS
NATURE OF CHANGE
LIMITED EXTENSIVE
HIGH
ORGANIZATION
INTER-
ORGANIZATION
ORGANIZATION
RISK
SCOPE
SPECIFIC
SECTORIAL
FUNCTIONAL
NORMAL
TASK
MINIMAL MAJOR
MANAGEMENT COMMITMENT

25. Project Organization
• Change management team
– Owners of the process
– Project manager
– Project execution team
– Creativity session animator
– Ad-hoc specialists
• Manager of committee
• Group of clients
• The “studio” approach

26. Creativity

27. Decisions First
The “industrial” approach:
The PCGI Studio approach:

28. Between Streams
Concurrency
Creativity Sessions
BUSINESS
BUSINESS
SOLUTIONS
PROCESS
SYSTEMS
BUSINESS
TRANSITION
Creativity
Mandates
Sessions
PROCESS
Creativity
Mandates
Sessions
SYSTEMS
Creativity
Mandates
Sessions
TRANS-
Creativity
ITION Mandates
Sessions

29. Simplification of BPE Process
80% 20%
VALUE
TIME

30. Prototypes

31. Reuse

32. Speed of Process

33. Para-VENT RPM MODEL
P a rtic ip a n ts
H
C u s to m e rs
& S ta k e -
H o ld e rs
P ro c e s s
J
S ta k e h o ld e r
P ro c e s s
C K
S ta k e h o ld e r
P ro c e s s
H
F I M
S ta k e h o ld e r
P ro c e s s
B D
S ta k e h o ld e r
O th e r O rg .
L
P a rtic ip a n t
O th e r O rg .
E
P a rtic ip a n t
B u s in e s s
G
P a rtn e rs
A
S u p p lie rs
S y s te m s &
S .1 S .2 S .3
E n a b le rs
F ig . 1 6 .2 : B u s in e s s P ro c e s s M o d e lin g T e c h n iq u e s

34. Para- VENT RPM “leveling”
Business
Process
(level “1”)
Business
Sub- Process
(level “2”)

35. ? ?
?
?
(a) Lack of Customer Focus (b) Activities without Value
?
?
(c) Redundant Activities/Outputs (d) Internal Deliverable Focus

36. (e) Too Many “Handoffs”
(e) Focus on Control
(h) Process “Loops”
(g) Lack of Concurrency

37. DESCRIPTION OF
STAGES AND ACTIVITIES

38. PCGI Para-VENT BUSINESS PROCESS ENGINEERING METHODOLOGY
CHANGE MANAGEMENT
P.0: PROTOTYPE
IMPLEMENTATION I.0: IMPLEMENT
IMPLEMENTATION NEW
NEW BUSINESS
STAGES
STAGES BUSINESS
PROCESSES
PROCESSES
B
P E
DESIGN T.0: PLAN BUSINESS
DESIGN
R N
PROCESS
O E
STAGES
STAGES TRANSITION
J F
E I
C T
F.0: DEFINE FUTURE
T S
BUSINESS
PROCESSES
M
A M
S.0: DETERMINE
N A
FUTURE BUSINESS
A N
PROCESS STRATEGY
G A
E G
M E
C.0: UNDERSTAND
E M
CURRENT BUSINESS
N E
PROCESSES
T N
T
PLANNING
Pr.0: PREPARE R.0: UNDERSTAND BUSINESS PLANNING
& PLAN CHANGE REQUIREMENTS
STAGES
STAGES
PROJECT & BUSINESS PROCESSES
BUSINESS PROCESS MEASUREMENT & OPTIMIZATION
Fig. 6.1: The -VENT Business Process Engineering Methodology Stages
Para

39. HOW?
• EXECUTIVE INTERVIEWS
• CREATIVITY SESSIONS
– FOCUS
– DIRECTIONS
– DECISIONS
– SUPPORT
– MANDATES
• ITERATIONS
– BUSINESS
– CURRENT & ASSESSMENT
– STRATEGY & TARGET
– TRANSITION

40. P r.0 : P R E P A R E & P L A N P R O J E C T
P r.0 : P R E P A R E & P L A N P R O J E C T
P r.5 ID E N T IF Y P O T E N T IA L A R E A S O F S E N S IT IV IT Y
- P o litic a l
- C o n tra c tu a l
- R e g u la to ry / L e g a l
- Hum an
- M o ra l / E th ic a l
P r. 1 P r.8
P r.3
P r.2 P r.6
D E F IN E P R O J E C T D E V E L O P IN IT IA L
D E F IN E P R O J E C T
D E F IN E P R O J E C T S C O P E D E F IN E D E L IV E R A B L E
IN IT IA L O B J E C T IV E S PRO JECT PLAN
D E L IV E R A B L E S
& C O N S T R A IN T S A C C E P T A N C E C R IT E R IA
- D E F IN E T Y P E
-ID E N T IF Y P E R C E IV E D - D E V E L O P P R E L IM IN A R Y
- P re s e n ta tio n s
- D E T E R M IN E P R O J E C T - D E F IN E A C C E P T A N C E
O P P O R T U N IT IE S PR O JE C T S TR A TE G Y
- R e p o rt
B O U N D A R IE S C O M M IT T E E
- N e w b u s in e s s - e tc .
- B u s in e s s U n it(s )
- N e w p ro d u c ts - E S T A B L IS H P R O J E C T
- L im its - D E T E R M IN E
- N e w c u s to m e rs C O M M U N IC A T IO N S
- D E T E R M IN E A U D IE N C E
- e tc . M E A S U R E M E N T C R IT E R IA
- e tc . STR ATEG Y
- D E T E R M IN E F O R M A T
- D E T E R M IN E R E A C H - D E T E R M IN E Q U A L IT Y
-ID E N T IF Y P E R C E IV E D - ID E N T IF Y R O L E S A N D
- C u s to m e r im p lic a tio n A S S U R A N C E C R IT E R IA
PR OBLEM S R E S P O N S IB IL IT IE S
- D E T E R M IN E S T Y L E
- S u p p lie r im p lic a tio n
- F in a n c ia l
- P a rtn e r im p lic a tio n
- Q u a lity - ID E N T IF Y A C T IV IT IE S
- ID E N T IF Y L E V E L O F D E T A IL
- e tc .
- D E T E R M IN E R A N G E
- ID E N T IF Y IN IT IA L P R O J E C T
- D E L IV E R Y D A T E S
- A n tic ip a te d ty p e o f c h a n g e
- ID E N T IF Y M O T IV A T IO N STR UCTUR E
- A n tic ip a te d m a g n itu d e o f
A N D “T R IG G E R ”
change
- In te rn a l - C R E A T E P R E L IM IN A R Y
- C u s to m e r PR O JE C T P LA N
- D E T E R M IN E H O R IZ O N
- C o m p e titio n
P r.7
- T im e fra m e (s ) P r.4
- e tc . - D E T A IL N E X T S E T O F C O N -
- R ange D E T E R M IN E
D E F IN E P R O J E C T C U R R E N T A C T IV IT IE S
PRO JECT TEAM
- ID E N T IF Y A N T IC IP A T E D S P O N S O R S H IP
- ID E N T IF Y “G IV E N S ”
- S E T U P P R O J E C T “M IL E -
P R O J E C T D E L IV E R A B L E
- ID E N T IF Y IN IT IA L STO NES”
- F e a s ib ility s tu d y - ID E N T IF Y P R O J E C T
- ID E N T IF Y C O N S T R A IN T S
TEAM M EM BERS
- R e c o m m e n d a tio n s “O W N E R ”
- P o litic a l
- D ia g n o s tic
- F in a n c ia l
- ID E N T IF Y A D D IT IO N A L
- Im p le m e n ta tio n - ID E N T IF Y IN IT IA L
- T im e
S K IL L S / P A R T IC IP A N T S
- e tc . PR O JE C T
- e tc .
R E Q U IR E D
STAKEH OLDERS
- ID E N T IF Y H O W P R O J E C T
- ID E N T IF Y T IM E R E Q U IR E D
R E S U L T S W IL L B E U S E D
F ig . 7 .2 : T h e in -V E N T P re p a re a n d P la n P ro je c t S ta g e

41. R .0 : U N D E R S T A N D B U S IN E S S C H A N G E R E Q U IR E M E N T S
R .0 : U N D E R S T A N D B U S IN E S S C H A N G E R E Q U IR E M E N T S
R .4 ID E N T IF Y C U R R E N T / F U T U R E B U S IN E S S R E F E R E N C E B A S E
- ID E N T IF Y “W O R L D -C L A S S ” O R G A N IZ A T IO N S
- ID E N T IF Y IN D U S T R Y (“B E S T -IN -C L A S S ”) L E A D E R S
- ID E N T IF Y G E N E R IC P R O C E S S L E A D E R S
- ID E N T IF Y G E N E R IC S T A N D A R D S / B E N C H M A R K S
R .2 R .7 D E V E L O P F U T U R E B U S IN E S S V IS IO N
R .1 ID E N T IF Y C U R R E N T /
- ID E N T IF Y O R G A N IZ A T IO N T A R G E T B U S IN E S S E N V IR O N M E N T
UNDERSTAND FUTURE CUSTOM ERS &
- ID E N T IF Y N E W B U S IN E S S O P P O R T U N IT IE S
O R G A N IZ A T IO N PRODUCTS
- ID E N T IF Y H O W T O S O L V E C U R R E N T P R O B L E M S
M IS S IO N &
- R E IN F O R C E C U R R E N T B U S IN E S S S T R E N G T H S
B U S IN E S S - ID E N T IF Y N E W B U S IN E S S
- ID E N T IF Y T A R G E T E M P L O Y E E S K IL L S E T S / Q U A L IT IE S
O P P O R T U N IT IE S
- e tc .
-ID E N T IF Y W H A T - W HO ARE CUSTO M ERS?
B U S IN E S S T H E - W HER E ARE THEY?
O R G A N IZ A T IO N IS - W H Y A R E / W IL L T H E Y B E
R .6 R .8 R .1 0
C U R R E N T L Y IN CUSTO M ERS?
ID E N T IF Y C R IT IC A L ID E N T IF Y P O T E N T IA L D E V E L O P B U S IN E S S
- ID E N T IF Y P R O D U C T S
B P E IM P R O V E M E N T TECHNOLOGY ENABLERS CASE FOR CHANGE
- ID E N T IF Y C U R R E N T - ID E N T IF Y S E R V IC E S
M IS S IO N TARGETS (IT E R A T IO N # 1 )
- ID E N T IF Y C U S T O M E R
- In fo rm a tio n T e c h n o lo g y
-ID E N T IF Y IM P R O V E M E N T
P R O F IL E S F O R E A C H
- ID E N T IF Y T A R G E T S
- ID E N T IF Y W H A T TYPE
- T e le c o m m u n ic a tio n s
B U S IN E S S T H E - C ost
- ID E N T IF Y C H A N G E S
O R G A N IZ A T IO N W IL L R .3 - Q u a lity
- R o b o tic s / In te llig e n t M a c h in e s
B E IN IN T H E T A R G E T - T im e
ID E N T IF Y C U R R E N T
- ID E N T IF Y B E N E F IT S
T IM E F R A M E - F le x ib ility
B U S IN E S S P R O C E S S - T ra n s p o rta tio n - T a n g ib le s
- R e s p o n s iv e n e s s
O P P O R T U N IT IE S - In ta n g ib le s
- ID E N T IF Y T A R G E T - e tc .
- e tc .
M IS S IO N
- ID E N T IF Y H IG H L E V E L - ID E N T IF Y IM P R O V E M E N T - ID E N T IF Y K E Y C O S T S
CO ST STRUC TURES SCALE
- UN DER STAND O RG .
- ID E N T IF Y P R O C E S S - R a d ic a l - ID E N T IF Y P R IO R IT IE S
C R IT IC A L S U C C E S S
Q U A L IT Y IM P R O V E M E N T - In c re m e n ta l
FAC TOR S
R .9
NEEDS - C o n tin u o u s - E V A L U A T E V IA B IL IT Y
ID E N T IF Y C U R R E N T &
- W a s te R e d u c tio n
F U T U R E K E Y H IG H L E V E L
- M e tric s - D E F IN E V A L U E A N D - ID E N T IF Y IM P L IC A T IO N S
B U S IN E S S P R O C E S S E S
- D e fe c t M a n a g e m e n t IM P R O V E M E N T T A R G E T S
- ID E N T IF Y T E M P O R A L - M e tric s - D O C U M E N T B U S IN E S S
- ID E N T IF Y K E Y O U T P U T S
O P P O R T U N IT IE S - A c c u ra c y / Q u a lity CASE
- ID E N T IF Y H IG H L E V E L
- e tc . - e tc .
PRO CESSES - V E R IF Y C H A N G E S IN
- ID E N T IF Y H IG H L E V E L PR O JE C T S C O PE O R
R .5 S U B -P R O C E S S E S (IF R Q D .) O B J E C T IV E
U N D E R S T A N D C U R R E N T / F U T U R E M A J O R E X T E R N A L C O N S T R A IN T S
- C O N F IR M P R O C E S S
- R e g u la to ry - E n v iro n m e n ta l
O W N E R / C H A M P IO N (S ) - O B T A IN M A N A G E M E N T
- C o n tra c tu a l - S o c ia l
- e tc . APPRO VAL FO R NEXT
- Legal - e tc .
S T A G E (S )
F ig . 8 .2 : T h e in -V E N T U n d e rs ta n d B u s in e s s C h a n g e N e e d S ta g e

42. C .0 : U N D E R S T A N D C U R R E N T B U S IN E S S P R O C E S S E S
C .0 : U N D E R S T A N D C U R R E N T B U S IN E S S P R O C E S S E S
C .3 U N D E R S T A N D C U R R E N T O R G A N IZ A T IO N C U L T U R E
- O rg a n iz a tio n V a lu e s - A ttitu d e s to w a rd s R is k - V ie w s o n S ta tu s - e tc .
- V ie w s o n Q u a lity - A ttitu d e s to w a rd s In n o v a tio n - M e th o d s o f C o m p e n s a tio n
C .2 D E T A IL C U R R E N T B U S IN E S S P R O C E S S C O N S T R A IN T S
- R e g u la to ry , C o n tra c tu a l, P h y s ic a l, G e o g ra p h ic , E n v iro n m e n ta l, M o ra l / E th ic a l, e tc .
- U N D E R S T A N D IN -P R O G R E S S C H A N G E S IN C U R R E N T P R O C E S S
C .6 C .7 C .8 C .1 0
C .4
ID E N T IF Y EVALUATE M EASURE KEY UPDATE
U N D E R S T A N D C U S T O M E R ’S V IE W S O F
CURRENT CURRENT CURRENT B U S IN E S S C A S E
CURRENT O UTPUTS
PROCESS B U S IN E S S B U S IN E S S FOR CHANGE
- ID E N T IF Y “K E Y ” C U S T O M E R G R O U P S A C T IV IT IE S & PROCESSES PROCESS (IT E R A T IO N # 2 )
- ID E N T IF Y B E N E F IT S
FLOW S M E T R IC S
- U N D E R S T A N D “K E Y ” C U S T O M E R ’S V IE W O F - COMPARE TO - T a n g ib le s
OU TPU TS REFERENC E BASE - In ta n g ib le s
- ID E N T IF Y K E Y
- ID E N T IF Y S U B -
M E T R IC S
PRO CESSES
- E V A L U A T E A B IL IT Y - ID E N T IF Y C U R R E N T
T O A T T A IN F U T U R E CO STS
- ID E N T IF Y S O U R C E S
- ID E N T IF Y A C T IV IT IE S
IM P R O V E M E N T S O F IN F O R M A T IO N
BY R O LE
- R E F IN E P R IO R IT IE S
C .5 - ID E N T IF Y V A L U E - E V A L U A T E Q U A L IT Y
- ID E N T IF Y IN P U T S &
A D D E D B Y A C T IV IT Y - V E R IF Y C H A N G E S IN
O F IN F O R M A T IO N
O U T P U T S B Y A C T IV IT Y
U N D E R S T A N D O R G A N IZ A T IO N ’S V IE W PR O JE C T S C O PE O R
OF CURRENT OUTPUTS - ID E N T IF Y P R O C E S S O B J E C T IV E
- E V A L U A T E V IA B IL IT Y
- ID E N T IF Y F L O W S &
-S tre n g th s OF M EASUREM ENTS
S E Q U E N C IN G O F
- U N D E R S T A N D O R G ’S V IE W O F O U T P U T S - W eaknesses - ID E N T IF Y S T A F F IN G
A C T IV IT IE S
- R is k s C H A N G E S (if a n y )
- M EASU RE KEY
- U N D E R S T A N D O R G ’S V IE W O F C U S T O M E R ’S - O p p o rtu n itie s P R O C E S S M E T R IC S
- ID E N T IF Y E X T E R N A L
- U P D A T E B U S IN E S S
V IE W S O F O U T P U T S P A R T IC IP A N T S
- ID E N T IF Y P O T E N T IA L CASE
- EVALUATE RESULTS
IM P R O V E M E N T S
- CO M PARE, EVALUATE, &RESO LVE V IS --A -V IS P R E V IO U S
- ID E N T IF Y P R O C E S S
- G ET APPRO VAL FO R
D IS C R E P A N C IE S A S S U M P T IO N S
IN T E R -R E L A T IO N S H IP S
N E X T S T A G E (S )
C .1 C .9
ID E N T IF Y “ Q U IC K F IX E S ”
U N D E R S T A N D S T A K E H O L D E R S R O L E S & R E S P O N S IB IL IT IE S
- E L IM IN A T E N O N -V A L U E A C T IV IT IE S / F L O W S
- ID E N T IF Y P R O C E S S S T A K E H O L D E R S : IN T E R N A L & E X T E R N A L
- M E R G E A C T IV IT IE S
- C u s to m e rs , S u p p lie r, C o -R e s p o n s ib le P a rtn e r, e tc .
- S IM P L IF Y A C T IV IT Y O U T P U T S
- ID E N T IF Y R O L E S
- IN C R E A S E C O M M U N IC A T IO N
- O rie n ta tio n / D ire c tio n , E x e c u tio n , D e c is io n M a k in g , C o n s u ltin g , e tc .
F ig . 9 .2 : T h e in -V E N T U n d e rs ta n d C u rre n t B u s in e s s P ro c e s s e s S ta g e

43. S .0 : D E T E R M IN E F U T U R E B U S IN E S S P R O C E S S S T R A T E G Y
S .0 : D E T E R M IN E F U T U R E B U S IN E S S P R O C E S S S T R A T E G Y
S .3 U N D E R S T A N D T E C H N O L O G Y E N A B L E R IM P A C T S
S .7 ID E N T IF Y C H A N G E M A N A G E M E N T S T R A T E G IE S
(B Y O P T IO N )
- C O N F IR M E N A B L E R S - ID E N T IF Y & E V A L U A T E IM P A C T S
- In fo rm a tio n T e c h n o lo g y - C o m p re s s io n o f tim e - ID E N T IF Y C R IT IC A L S U C C E S S F A C T O R S F O R C H A N G E
- In te llig e n t M a c h in e s - G e o g ra p h ic in d e p e n d e n c e - D is c lo s u re - R o le s / R e s p o n s ib ilitie s
- T e le c o m m u n ic a tio n s - In c re a s e in q u a lity - C o m m u n ic a tio n s - O rg a n iz a tio n S tru c tu re
- e tc . - e tc . - R e s o u rc e / E m p lo y e e - C o m p e n s a tio n /In c e n tiv e s
R e d e p lo y m e n t - O rg a n iz a tio n C u ltu re
S .6
S .1 S .9
U N D E R S T A N D IN D U S T R Y & B U S IN E S S S .5
ID E N T IF Y & A S S E S S
T R E N D S & D IR E C T IO N S SELEC T STR A TEG Y &
D E F IN E F U T U R E
P O T E N T IA L
U P D A T E B U S IN E S S
B U S IN E S S P R O C E S S
- ID E N T IF Y G E N E R IC IN D U S T R Y S T R A T E G IE S R O A D -B L O C K S T O
CASE FOR CHANGE
S T R A T E G IE S &
- K A N B A N , J IT , S u p p lie r S c h e d u lin g , S u p p lie r C e rtific a tio n ,
C H A N G E (B Y O P T IO N )
(IT E R A T IO N # 3 )
P ro g ra m M a n a g e m e n t, e tc . O P T IO N S
- F in a n c ia l
- C u ltu ra l
- E V A L U A T E A P P L IC A B IL IT Y O F S T R A T E G IE S - E V A L U A T E O P T IO N S
- ID E N T IF Y G U ID IN G / D E S IG N - P o litic a l
(S W R O )
P R IN C IP L E S - Hum an
- ID E N T IF Y S H O R T L IS T O F P O T E N T IA L S T R A T E G IE S
- S o c ia l/ E n v iro n m e n ta l
- ID E N T IF Y R A N G E O F
- ID E N T IF Y A L T E R N A T IV E S - e tc .
B E N E F IT S B Y O P T IO N
- E lim in a tio n
- E m p o w e rm e n t
- ID E N T IF Y “W O R S T C A S E ”
- S im p lific a tio n
S .2 C O S T S B Y O P T IO N
D E T A IL , Q U A N T IF Y , & P R IO R IT IZ E K E Y S .8
- C o n s o lid a tio n
- F ix e d
- O u ts o u rc in g
B U S IN E S S P R O C E S S C H A N G E N E E D S
ID E N T IF Y & A S S E S S - V a ria b le
- A u to m a tio n
- ID E N T IF Y IN T E R N A L & E X T E R N A L M E T R IC S
P O T E N T IA L IM P A C T S
- e tc .
- C o s ts , D e la y s , Q u a lity , R e s p o n s iv e n e s s , F le x ib ility , e tc . - P E R F O R M A S E N S IT IV IT Y
O F C H A N G E (B Y A N A L Y S IS B Y O P T IO N
- S E L E C T S T R A T E G IE S
- ID E N T IF Y E X IS T E N C E & A V A IL A B IL IT Y O F M E T R IC O P T IO N )
M E AS U R E M E N T TO O LS - SELECT A TARG ET
- G R O U P S T R A T E G IE S &
B U S IN E S S P R O C E S S
- C u s to m e rs
D E F IN E O P T IO N S F O R
- E V A L U A T E Q U A L IT Y O F M E T R IC M E A S U R E M E N T STR ATEG Y
- P ro d u c ts
C HAN GES
- E m p lo y e e s
- ID E N T IF Y A D D IT IO N A L T O O L S / P R O C E D U R E S - V E R IF Y C H A N G E S IN
- R e s o u rc e s
R E Q U IR E D T O M E A S U R E T A R G E T M E T R IC S PR O JE C T S C O PE O R
- In fra s tru c tu re
O B J E C T IV E
- L o g is tic s
- O rg a n iz a tio n S tru c tu re
S .4 - A D JU S T PR O JE C T
- A llia n c e s
U N D E R S T A N D H IS T O R Y O F C H A N G E S T O
S T A F F IN G (IF N E E D E D )
- P a rtn e rs h ip s
B U S IN E S S P R O C E S S (E S )
- C o n tra c ts
- U P D A T E B U S IN E S S
- e tc .
- IN V E S T IG A T E P R E V IO U S A T T E M P T S A T C H A N G IN G P R O C E S S (E S ) CASE & G ET APPRO VAL
- UN DER STAND R ESULTS & REASO NS FOR R ESULTS F O R N E X T S T A G E (S )
- ID E N T IF Y E R R O R S T O A V O ID / F A C T O R S F O R S U C C E S S
- e tc .
F ig . 1 0 .2 : T h e in -V E N T D e te rm in e F u tu re B u s in e s s P ro c e s s S tra te g y S ta g e

44. F .0 : D E F IN E F U T U R E B U S IN E S S P R O C E S S E S
F .0 : D E F IN E F U T U R E B U S IN E S S P R O C E S S E S
F .7
F .2 F .8
V E R IF Y P E R F O R M A N C E O F R E F E R E N C E B A S E (if re q u ire d )
EVALUATE NEW ID E N T IF Y
- In fo rm a tio n S o u rc e s
B U S IN E S S E X P E R IM E N T A L
- Q u a lity
PROCESSES PROTOTYPE
- A v a ila b ility
R E Q U IR E M E N T S
- M e a s u re m e n t C o n d itio n s
- C A T E G O R IZ E C H A N G E S
- B e n c h m a rk s , e tc .
- V a lu e A d d e d
- V a lid a te S tra te g y
- E ffo rt
- In v e s tm e n t
- C a lib ra te E s tim a te s
- T im e
F .6
F .1 F .3 - B e n e fits
- e tc .
- R e s is ta n c e to C h a n g e
D E T A IL IM P A C T S O F
F IN A L IZ E F U T U R E R E D E S IG N C U R R E N T
R E D E S IG N C U R R E N T - T ra in in g R e q u ire d
N E W B U S IN E S S - E V A L U A T E S E N S IT IV IT Y
PROCESS CHANGE B U S IN E S S
B U S IN E S S - e tc .
O F R E C O M M E N D A T IO N S
PROCESSES
R E Q U IR E M E N T S PROCESSES
PROCESSES T O U N C E R T A IN T Y O F
- R e d u c e R is k
E S T IM A T IO N
- M a n a g e m e n t S ty le
- F IN A L IZ E C U S T O M E R S E T
- E V A L U A T E R IS K S O F
- T e c h n o lo g ic a l C a p a b ility
- F IN A L IZ E “V A L U E ” R E C O M M E N D A T IO N S
F .9
D E F IN IT IO N -T e c h n o lo g ic a l
- H u m a n R e s o u rc e s
- F in a n c ia l U P D A T E B U S IN E S S
- S k ills
- F IN A L IZ E O U T P U T S - H um an
- K n o w le d g e CASE FOR CHANGE
- P ro d u c ts - e tc .
(IT E R A T IO N # 4 )
- S e rv ic e s
-O rg a n iz a tio n S tru c tu re
- In fo rm a tio n - R E F IN E E S T IM A T E S
- E V A L U A T E W .C . C O S T S V S
F .4 - R o le s
B .C . B E N E F IT S
- R e s p o n s ib ilitie s
-F IN A L IZ E M E T R IC S D E S IG N N E W - V E R IF Y C H A N G E S IN
D E S IG N N E W
- In d ic e s PR O JE C T S C O PE O R
- E V A L U A T E T H E A B IL IT Y
B U S IN E S S
B U S IN E S S - C o m p e n s a tio n
- V a lu e s O B J E C T IV E
O F O R G A N IZ A T IO N T O
PROCESSES
PROCESSES
- S o u rc e s ABSOR B CH ANG E
- C u ltu ra l S ta tu s & B e lie fs
- A D JU S T PR O JE C T
- O B T A IN S T A F F IN G (IF N E E D E D )
- ID E N T IF Y A B E N E F IT S
- P o litic a l P o w e r & In flu e n c e
M ANAG EM ENT M ANAG EM ENT STRATEGY
APPRO VAL - U P D A T E B U S IN E S S C A S E
- In fo rm a tio n A v a ila b ility
& Q u a lity
- G ET M AN AG EM ENT
APPRO VAL
F .5 R E F IN E D E V E L O P M E N T O F C H A N G E M A N A G E M E N T S T R A T E G Y
- D E T A IL C H A N G E M A N A G E M E N T IS S U E S
- P R IO R IT IZ E IS S U E S
- FO R M U LA TE C H A N G E M A N A G E M E N T STR ATE G Y
F ig . 1 1 .2 : T h e in -V E N T D e fin e F u tu re B u s in e s s P ro c e s s e s S ta g e

45. F .3 : R E D E S IG N C U R R E N T B U S IN E S S P R O C E S S E S
F .3 : R E D E S IG N C U R R E N T B U S IN E S S P R O C E S S E S
F .3 f
F .3 a F .3 b F 3 .c F .3 d F .3 e
A U TO M A TE
E L IM IN A T E N O N - EM PO W ER S IM P L IF Y C O N S O L ID A T E & OUTSOURCE
A C T IV IT IE S &
VALUE ADDED PROCESS PROCESS FLOW S, RESEQUENCE R E S P O N S IB IL IT IE S
IN F O R M A T IO N
FLOW S, STAKEHOLDERS D E L IV E R A B L E S , A C T IV IT IE S &
D E L IV E R A B L E S , & A C T IV IT IE S FLOW S
- ID E N T IF Y C A N D ID A T E - EVALUATE
- REDUC E CO NTR OL
& A C T IV IT IE S
A C T IV IT IE S F O R TEC H N O LO G Y
R E Q U IR E M E N T S - ID E N T IF Y “C R IT IC A L - IN T E G R A T E
O U T S O U R C IN G E N A B L E R S V IS -A -V IS
PATH” A C T IV IT IE S
- E L IM IN A T E N O N -V A L U E - TAR GET NEEDS
- MANAGE BY
A D D E D D E P E N D E N C IE S - EVALUATE
E X C E P T IO N - REDUCE - MERGE
- A llo w c o n c u rre n c y “IN -S O U R C IN G W IT H IN - C A T E G O R IZ E T H E
- S ta k e h o ld e rs R E S P O N S IB IL IT IE S
- P re / p o s t e x e c u te O R G A N IZ A T IO N A U T O M A T IO N
- M O V E D E C IS IO N - H a n d o ffs
fu n c tio n s P O T E N T IA L O F T H E
M A K IN G A S C L O S E T O - In te rn a l d e liv e ra b le - C O N S O L ID A T E
- D E T E R M IN E S E R V IC E A C T IV IT IE S & F L O W S
THE O UTPUT AS v o lu m e IN F O R M A T IO N
-E L IM IN A T E LE V ELS
P O S S IB L E - In te rn a l d e liv e ra b le
B O T T L E -N E C K S & L O O P S - ID E N T IF Y E X IS T IN G
- “P A R A L L E L IZ E ”
c o m p le x ity
- ID E N T IF Y S E R V IC E SYSTEM S & DBs TO
- M AKE THE CUSTO M ER A C T IV IT IE S F O R
- E L IM IN A T E L E V E L M A N A G E A B IL IT Y B E R E E N G IN E E R E D
THE EXEC UTO R O F TH E - REUSE E X E C U T IO N C O N -
UNNECESSARY
(S U B )P R O C E S S - In fo rm a tio n CURRENCY
R E D U N D A N C IE S - ID E N T IF Y - ID E N T IF Y N E W
- C o m p o n e n ts
- “S h a d o w ” ro le s & CO NTRACTUAL SYSTEM S & DATA
- e tc . - e tc . - e tc .
a c tiv itie s R E Q U IR E M E N T S & BASES
- D u p lic a tio n C O N S T R A IN T S
- RECYCLE
- E S T IM A T E C O S T S O F
- In fo rm a tio n
- E L IM IN A T E - E S T IM A T E A U T O M A T IN G T H E
- C o m p o n e n ts
N O N V A L U E -A D D E D O U T S O U R C IN G C O S T S TAR GET PRO CESS
- e tc .
T R A N S C R IP T IO N S A C T IV IT IE S
- D a ta E n try /R e -e n try - RECO M M EN D
- M U L T I-V E R S IO N S :
- C o n v e rs io n O U T S O U R C IN G - E V A L U A T E IM P A C T S
E V A L U A T E 8 0 /2 0
- e tc . S O L U T IO N S O F A U T O M A T IO N
- T R IA G E A S E A R L Y A S
-E L IM IN A T E - ID E N T IF Y P O T E N T IA L - IT E R A T E
P O S S IB L E
D IS T R A C T O R S S U P P L IE R S F O R
-In v o lv e m e n t in O U T S O U R C IN G
o th e r p ro c e s s e s
-E L IM IN A T E
UNNECESSARY
IN T E R N A L
D E L IV E R A B L E S
F ig . 1 1 .3 : T h e in -V E N T R e d e s ig n C u rre n t B u s in e s s P ro c e s s e s A c tiv ity

46. F .4 : D E S IG N N E W B U S IN E S S P R O C E S S E S
F .4 : D E S IG N N E W B U S IN E S S P R O C E S S E S
F .4 e
F .4 a F .4 c F .4 d
F .4 b
A U TO M A TE
ID E N T IF Y &
ID E N T IF Y W O R K STR U C TU R E W O RK OUTSOURCE
A C T IV IT IE S &
EM PO W ER
R E Q U IR E D T O R E L A T IO N S H IP S R E S P O N S IB IL IT IE S
IN F O R M A T IO N
PROCESS
PRODUCE PROC. & FLOW S
STAKEHOLDERS
OUTPUTS R E Q U IR E D T O
- ID E N T IF Y C A N D ID A T E - EVALUATE
PRODUCE O UTPUTS
A C T IV IT IE S F O R TEC H N O LO G Y
- ID E N T IF Y K E Y N E W
- ID E N T IF Y V A L U E -
O U T S O U R C IN G E N A B L E R S V IS -A -V IS
B U S IN E S S P R O C E S S
ADD ED W O RK - S E Q U E N C E A C T IV IT IE S TAR GET NEEDS
STAKEH OLDERS
R E Q U IR E D T O TO - EVALUATE
PRO DU CE O UTPUTS - M a x im iz e C o n c u rre n c y “IN -S O U R C IN G W IT H IN - C A T E G O R IZ E T H E
- M O V E D E C IS IO N - M in im iz e L o g is tic s O R G A N IZ A T IO N A U T O M A T IO N
M AKER AS CLO SE TO
- G R O U P W O R K IN T O C h a in s P O T E N T IA L O F T H E
CUSTO M ER AS
M IN IM U M N U M B E R - M in im iz e L in e s o f - D E T E R M IN E S E R V IC E A C T IV IT IE S & F L O W S
P O S S IB L E
O F A C T IV IT IE S C o m m u n ic a tio n LE V ELS
- M in im iz e “H a n d o ffs ” - M anual
- D E F IN E N E W R O L E S
- ID E N T IF Y IN P U T S &
- ID E N T IF Y S E R V IC E - P a rtia lly A u to m a te d
T O M A X IM IZ E
OU TPU TS FO R EACH - M IN IM IZ E F L O W S L E V E L M A N A G E A B IL IT Y - F u lly A u to m a te d
R E S P O N S IB IL IT Y &
A C T IV IT Y B E T W E E N A C T IV IT IE S
A C C O U N T A B IL IT Y
- ID E N T IF Y - ID E N T IF Y T A R G E T
- G R O U P IN P U T S & - P ro d u c ts / G o o d s CO NTRACTUAL SYSTEM S & DATA
- M IN IM IZ E C O N T R O L
O U T P U T S IN T O - S e rv ic e s R E Q U IR E M E N T S & BASES
R O LE S
M IN IM U M N U M B E R - In fo rm a tio n C O N S T R A IN T S
OF FLO W S - C o n tro l - E S T IM A T E C O S T S O F
- MANAGE BY
- E S T IM A T E A U T O M A T IN G T H E
E X C E P T IO N - “T R IA G E ” E A R L Y O U T S O U R C IN G C O S T S TAR GET PRO CESS
A C T IV IT IE S
- M IN IM IZ E F L O W S T O - RECO M M EN D
& F R O M B U S IN E S S O U T S O U R C IN G - E V A L U A T E IM P A C T S
PARTNERS S O L U T IO N S O F A U T O M A T IO N
- EXTEND PRO CESS - ID E N T IF Y P O T E N T IA L - IT E R A T E
D E F IN IT IO N S U P P L IE R S F O R
O U T S O U R C IN G
F ig . 1 1 .4 : T h e in -V E N T D e s ig n N e w B u s in e s s P ro c e s s e s A c tiv ity