This whitepaper covers the NEOS business process modernization approach that help moves clients from their unsatisfactory current state to a desired future state.

1. Practical BPM – The NEOS Approach
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A NEOS Whitepaper

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Practical BPM – The NEOS Approach
Introduction
Business process is a hot topic. Internet searches about process redesign yield articles, certifications, and frameworks. These writers cite Geary Rummler, Michael Hammer, Petri Nets, and other sources of academic findings and methodologies. At conferences, the number of Lean-Six Sigma practitioners can make it seem as though Lean, Six Sigma, or Lean-Six Sigma are the only reputable or valid approaches to undertaking a process redesign initiative.
These methodologies, deployed correctly, can save companies impressive amounts of time, money, and resources. They are not, however, silver bullets. In certain situations, the focus on quality can stifle creativity, and the use of jargon can make the effort a mystery for the uninitiated. Sometimes, the emphasis on “optimization” gets in the way of asking whether the activity could simply be eliminated.
This paper highlights a recent client engagement where NEOS adapted its standard methods to address the client’s real life business situation. This practical approach produced deliverables that the client could act on quickly without the lengthy deployment required by Lean, Six Sigma, and their counterparts.
The NEOS Approach to Business Process Modernization1
The NEOS business process modernization approach moves clients from their unsatisfactory current state to a desired future state. To help clients make the changes they want to see, NEOS uses its proven Rationalize-Orchestrate-Evolve strategy. This strategy consists of three phases, each of which has defined activities and outcomes.
Phase 1: Rationalize
The purpose of the Rationalize phase is to ground the team in the client’s processes, produce a process framework that can be used ongoing, and make initial recommendations around process modernization. To do this, NEOS: 1) Prepares a Process Inventory; 2) Prioritizes and Scores the Processes; and 3) Makes Modernization Recommendations. The team will also identify quick hit fixes that the client can “spin off” for immediate action and results.
Depending on the client’s scope and existing documentation, Rationalizing can take as little as six weeks or as long as 12 weeks.
1 For more information on NEOS’ approach to Business Process Modernization, go to www.neosllc.com

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Phase 2: Orchestrate
In the Orchestrate phase, the team begins digging into the current and future state of the client’s business processes. NEOS tailors its standard activities of 1) Document Current State; 2) Design Future State; and 3) Plan Implementation to the specific client need and situation. Some clients, for example, decide to pay very little attention to understanding the details of the current state, preferring to spend their time and resources on defining the future state.
Depending on the client’s desired approach, the work is packaged into 8-12 week increments.
Phase 3: Evolve
During the Evolve phase, activities and deliverables are focused around implementing the future state processes according to the Program and Project Plans. The duration of Evolve will vary depending on the types of changes necessary to achieve the future state. The Evolve phase can result in organizational changes, system enhancements, role and responsibility modifications, new/revised procedures, training, workflow shifts, and adjustments to approval authority levels.
The NEOS Approach in Action
Background
Our client had previously failed twice to replace their legacy information system. Other consulting companies had produced hundreds of pages of requirements based on the current state. By the time the client contacted NEOS, they were committed to a making their third attempt a success and they decided to base the software decision on future state business process instead of only technology requirements.
The client defined five guiding principles for their project:
1. Begin with the processes at the start of the business cycle
2. Focus on future state with “zero interest” in current state
3. Leverage automation to enable the desired future state
4. Produce actionable deliverables that move the client forward
5. Think cross-functionally and look for commonalities

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NEOS designed a project approach around these guiding principles, adapting our standard business process modernization practices to match the client’s needs. The table below shows what NEOS did to adjust our Rationalize and Orchestrate phases for this project. Phase Activity How We Adapted It Rationalize Prepare Process Inventory No adaptation. We began by identifying the client’s business processes according to the chronology of their business. Prioritize / Score Processes Abbreviated. We confirmed their initial scope of six processes. Prepare Modernization Options Abbreviated. We applied modernization options from among the standard NEOS 102 but did not do a full Modernization Options analysis. Orchestrate Document Current State Eliminated. We did not document current state processes. Design Future State Rapid Design Session approach Since the approach to future state design was a Greenfield effort, we decided to use the concept of a rapid design session. Plan Implementation Focus on Software Evaluation Knowing that the client wanted to move into software evaluation as the immediate next step, we created deliverables to accelerate that activity.
We ended up defining an eight week project that produced three actionable deliverables:
1 – Process Inventory
2 – Future State Process Documents
3 – User Stories
Each deliverable builds on the one that comes before. This integration is described in the following section.
2 The NEOS 10 Process Modernization Options are: Leave As Is; Consolidate; Eliminate; Fully Automate; Reassign; Significantly Automate; Moderately Automate; No Automation; Outsource; Create New

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Integrated, Actionable Deliverables
We carefully designed the deliverables to achieve our client’s goals, leveraging NEOS methodologies and templates but also innovating and modifying for a tailored solution rather than cookie-cutter results. Given the client’s ultimate goal of heavily leveraging technology to enable future process, we built deliverables that lead smoothly into software assessment.
(Grayed out deliverable was not part of the initial project. it was produced during a subsequent engagement.)
1. Process Inventory
The Process Inventory identifies and defines the client’s business processes at the highest level. It is a living document that will grow and change over the course of the project. Essentially, it lists and describes the client’s business processes just as any inventory would list and describe business assets. Like any inventory, the processes can and should be manipulated as business assets for the benefit of the client.
We used the standard NEOS templates, which combine a picture and narrative descriptions to produce the inventory. The process inventory aligns with the chronology of the client’s business, from intake of an order to invoicing and collecting from their customers. Within this chronology, we defined 20 processes across process groupings or “families.”
This inventory can be used to:
 Provide a commonly understood and supported process model across business functions. It enables everyone to talk about processes in the same way regardless of the project, function, or system.
 Communicate the operations of the company to investors and other outside entities
 Group and prioritize processes for project scoping
 Develop metric scorecards or KPIs
 Design or re-design the organization around groups of work

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 Make funding, investment, and automation decisions
 Assign and track process ownership responsibility and accountability
 Help orient new employees to their roles and the company’s operations
As we prepared the Process Inventory, we confirmed the client’s original scope of six processes. We then informally applied the standard NEOS 10 business process modernization options, reducing the number of processes from six to five.
 We recommended that two of the six processes be consolidated, leaving a set of five in-scope processes.
 We recommended that one of the five processes be fully automated, leaving four to be reimagined.
 We recommended that three of the remaining four processes be reimagined with a significant focus on automation.
 We recommended that the fourth of four processes be reimagined with a minimal amount of automation.
2. Future State Process Documentation
When you mention “process documentation,” most people immediately think of multi-branching diagrams with swim lanes and decision diamonds. We’ve settled on a less time-consuming and more informative layout when designing a future state vision. We combine a “four-box” level diagram with a table to capture key information about each step in the process. This type of documentation presents a significant amount of information in a straight-forward, readable format.
The row headings adapt to the priorities of the client; however, they typically include:
 Description of Future State
 Key Decisions
 Key Enablers
 Compliance/Control Requirements

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We prepared future state process documentation for the four processes that required automation for re- design, and we used a rapid design approach called Future Week. During Future Week, the cross- functional core team came together to whiteboard the desired processes, addressing the needs and priorities of each functional area. The project team used the outcomes of Future Week to produce future state process documentation based on that design.
The Future State Process Documentation can be used to:
 Define software requirements
 Audit compliance and control points
 Identify process, compliance, risk, and other gaps between entities
 Analyze the gaps between future and current state
 Develop training and procedure manuals
 Communicate with employees
 Document the processes at a more detailed level
 Diagnose areas of operational risk
 Streamline processes
 Design or re-design roles and responsibilities
3. User Stories
We used the Future State Process Documentation to define software requirements, and we chose to adapt the Agile User Story format to do so. We recognize that these deliverables are not user stories in the purest sense; however, they helped the client articulate the needs of each user group/role in terms of both the future state and the software.
The team moved step by step through each of the future state processes, crafting user stories and defining acceptance criteria. The acceptance criteria were narrowly focused by asking, “What does a software package need to provide to enable this user story?”
When the user stories were circulated in DRAFT format, the client found it relatively easy to review and provide feedback. They could place themselves into the future state process because the user story was written from their points of view rather than being system function driven.
The User Stories can be used to:
 Evaluate software packages and determine fit
 Define system acceptance tests
 Train resources for User Acceptance Testing
 Begin requirements definition for a system build, if a package is not chosen

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 Communicate to non-technical resources what the system should be able to do
Closing
The client achieved more in the eight week NEOS engagement than in its previous attempts. The cross- functional core team, by defining the process inventory and future state processes, streamlined their requirements and identified commonalities to be leveraged through the future state. The client moved right into software evaluation and assessed its automation options based on 62 user stories and 217 functional acceptance criteria.
About NEOS NEOS is a management consulting and technology services firm with unparalleled experience in holistic modernization, enterprise data and business operations consulting. Our clients trust us to help them transition from legacy business processes and technologies to their optimized future state. Our mission is to bridge the business-technology divide with creative, implementable solutions that yield short-term results and long-term benefits.
About the Author Carla Gregory brings over 25 years of consulting experience in the business process management, organization development and operations efficiency spaces. Since joining NEOS in 2011, Carla has established and currently leads the Business Consulting practice area. She has presented on business process topics at the IQPC conference, Process Excellence in Financial Services. In 2013, Carla was a key contributor to NEOS being recognized as a “Seven Small Jewels: Seven to Watch” firm, a designation given to professional services firms that stand out as the best niche firms defying the odds in a tumultuous economy. In 2012, Carla was named the winner of a Bronze Stevie® Award in the Female Executive of the Year Business Services category in the 9th annual Stevie Awards for Women in Business for creating new, adaptive business processes and a predictable management structure.
Contact Information
View the NEOS website at www.neosllc.com to download additional whitepapers and to learn more about our complete suite of offerings and solutions. Contact any member of our team at (860) 519-5601.