Building and Aligning a Business Process...

©2011 BPTrends Associates. All Rights Reserved

Building and Aligning a Business Process Architecture

Roger T. Burlton, Director Of Consulting ServicesBPTrends Associates [email protected]: @RogerBurlton+1-604-240-5436

www.bptrends.com

Copyright © 2011 BPTrends Associates. All Rights Reserved.2

Notice of Confidentiality

All materials you are given in this session are copyrighted by BPTrends Associates.

The materials must not be copied, duplicated, or reproduced in any manner, or transmitted to others without the written consent of BPTrends Associates.

BPTrends Associates may be contacted at

88 Waban Park, Newton, MA 02458 USA

[email protected]

+1 617 964 4753


Facilitators Reference Materials

Paul Harmon’s Business Process Change

2nd Ed.

Roger Burlton’s Business Process Management

www.amazon.comwww.amazon.co.uk

www.amazon.ca


1. Some Process Principles

2. Strategy Models

3. Process Architecture Maps

4. Process Scorecards

5. Process Governance Frameworks

6. Process/ Capability Alignment

7. Leveraging the Architecture into Process Analysis & Design

8. Conclusion

Business Process Architecture Agenda


Section 1Some Process Principles


The Focus of Process-Centric Enterprises

For Enterprises with Multiple Lines of Business

Copyright © 2011 BPTrends Associates. All Rights Reserved.

Program of Change

Business Function

Architecture

Technology Architecture

Information Architecture

Organization Model

OtherCapabilities

Migration Strategy

Project Portfolio

Business Strategy

PerformanceResults

Strategic IntentBusiness

Drivers

Typical Enterprise Misalignment

Business Process Maps

Business Process Model

Program of Change

Migration Strategy

Project Portfolio

Program of Change

Migration Strategy

Project Portfolio

Multiple Uncoordinated Functional Programs of Change

Migration Strategy

Project Portfolio

No managed co-ordination means no

alignment ofcapabilities, no

traceability and no value creation

7


Business Strategy

Capabilities Architecture

Program of Transformation

Business Process

Architecture

Technology Architecture

Information Architecture

Org/HR Design

OtherArchitectures

Change Projects

Traceability

8

Enterprise Performance Requires Alignment ofCapabilities & Traceability of Decisions

Stakeholder Strategy

Enterprise Vision/ Intent

Business Drivers

PerformanceResults

8


What’s Included in a Business Process Architecture?

• There’s no broad agreement on this term. Here’s our definition:

– A Business Process Architecture (BPA) is a set of models that provide information about the organization’s business processes

– A BPA describes relationships among processes – A BPA describes the relationship of the processes to

the organization’s vision, strategy, goals and stakeholders

– A BPA defines how the processes are measured and managed

– A BPA describes how the processes are aligned to other organizational resources, including Business Rules, IT assets and HR resources

9


Business Processes as Aligner of Capabilities: Process and Information at the heart of Configuration *

* Burlton Hexagon

Human Capital:• Competency• Capacity• Motivation

Policy & Rules:• Regulations• Policies• Business Rules

Organization Structure:• Formal • Roles and

Responsibilities• Incentives

Supporting Infrastructure:• Facilities• Equipment• Locations

Enabling Technology:• Software Services• Applications• Datastores

Intent & Strategy:• Enterprise • Stakeholder• Process

BPM: the discipline that improves measurable business process performance through ongoing optimization of enterprise-wideprocesses and their capabilities.

10


The BPTrends Associates Pyramid

Harmon Pyramid


The BPTrends Associates BPM Methodology

12


Section 2Strategy and Stakeholder Models


Architecture Development Activities


A Basic Strategic Vocabulary: The Business Motivation Model *

* www.businessrulesgroup.org

Applicable to:

• Organizational Unit

• Business Process

15


The value proposition is reflected in the strategic intent but is worth raising to be sure all managers see it the same way:Cannot be best at everythingMust predominate in one of:

Operational Excellence

Customer Intimacy

Product Leadership

Excel in one and maintain a baseline in the others

“The Core of any business strategy is the customer value proposition, which describes the unique mix of product and service attributes that a company offers. It defines how the organization will differentiate itself from competitors to attract, retain and deepen relationships with targeted customers. The Value proposition is crucial because it helps an organization connect its internal processes to improved outcomes with its customers.”

Kaplan and Norton

The Enterprise’s Value Proposition

16


Define Organization Context and Stakeholders


Exercise 1: Inside the box

• List some types of things inside the box that outsider stakeholders do not want to worry about?

• List some types of things that outsider stakeholders care about?

18


Analyze Each Stakeholder Relationship

Understand or Determine what does the successful future look like at the end of the planning horizon:

• The Exchanges of products, services or information.

• The Goals for future of Value Creation (Stakeholder Needs and Expectations)

• The Measurement Indicators of success (KPIs) for each Relationship Type

• The Objectives (Target Levels) for performance Improvement during the Planning Timeframe

• Those Capabilities that must be in place and Critical Success Factors that must be addressed to attain the Stakeholder value goals, expectations and KPI targets

• Together these are Evaluation Criteria for Business, Process, Technology and Human Change


The Stakeholder Diagram

• Describe exchanges on the Stakeholder Diagram

• Apply a simple notation to mark each entry with a colored shape

• Omit the green circle when diagram is too busy

20


Stakeholder Goals for the future state after success:2 perspectives – value to be created for the

stakeholder and value to the organization

What the new envisioned business environment will have made possible when successful *:

‘As a result of the success of the enterprise transformation program, they are now saying that …’

What’s our Goal for the Stakeholder Relationship = Meet their Needs and Expectations

"All important journeys must be guided by fixed stars."

* For YOUR organization or process, what do YOU want yours and the stakeholders’ perspectives to be ?

21


• Define your KPIs to reflect what you want to track about the needs and expectations of the relationship

• Identify the current performance against that KPI• Identify the targeted performance of the KPI at the end of the

planning horizon and at intermediate points

Stakeholder Relationship KPIs and Targets

Some Stakeholder KPIs: Appropriateness of offerings Satisfaction with offerings Timing Cost / Price Quality Defects Cost of non-conformance Share of spend Responsiveness Consistency Reliability

Profitability, …

22 22


Complete the statement:

“In order to be true to our mission and to meet the needs and expectations for each stakeholder it is absolutely vital that we increase, decrease or sustain the following capabilities:

…………………....…………………....…………………....…………………....…………………....…………………....…………………....”

Realizing Stakeholder Goals: Needed Capabilities (Critical Success Factors (CSFs))

What things does your organization have to do well or what capabilities must it have in place to be successful with the stakeholder?

23


Exercise 2: Workshop

• What are 3 external drivers and pressures today?

• Set a 2 year planning horizon for change

• Discuss the business strategic intent / value proposition to customers

• Identify 5 main stakeholder categories

• Identify for 1 of the stakeholders

– 3 ‘gives’ and 3 ‘gets’ and their health

– 2 needs they will have for the future

– 2 KPIs and target levels you want to achieve

– 2 Critical Success Factors that must be satisfied• Guidelines

– Make up your situation – There are no thinking constraints so have fun

You have been asked to take on responsibility for a local Pub’s entire enterprise process architecture.


Section 3Process Architecture Maps


Some Process Architecture Principles

• The Architecture is built from the perspective of a clear “Organization in Focus” (OIF)

• Everything coming into the OIF must come from at least one external stakeholder and be received by at least one process

• Everything leaving the OIF must go to at least one external stakeholder and be produced by at least one process

• Internally a chain of processes move stakeholder relationships through a lifecycle of state changes - from unawareness through termination

• Internally a chain of processes move assets through a lifecycle of state changes - from conception through retirement

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Value Chains Contain Value Streams

28


Analyzing Value Streams, Level 1 and Level 2 Processes

• We could choose one Value Stream and analyze its Level 1 and Level 2 processes and, perhaps also consider its management and its support processes

• We could use a Framework that would suggest possible Value Streams, Level 1 and Level 2 processes, and then simply edit the Framework’s proposed list

• We could work with a team from the company and try to generate all of the Value Streams, Level 1 and Level 2 processes at once using relationship and asset lifecycles

• We could do some combination

29


Some Business Process Frameworks

• Generic Enterprise Models intended to describe organizations of all types in all sectors.

– APQC’s Process Classification Framework

• Industry-Specific Models aiming to describe an industry in whole.

– ACORD Insurance Framework (Being developed)

– TeleManagement Forum’s eTOM

• Domain-Specific Models geared towards particular functions within the organization and the processes within them

– OCG’s ITIL (Info. Tech. Infrastructure Library)

– ISACA’s COBIT (Control OBjectives for IT)

• Process Lifecycle and Value Chain Models to examine all work in a connected process chain across and within enterprises.

– Supply Chain Council’s SCOR

– Canada Government (Treasury Board Secretariat) GSRM (Governments Strategic Reference Model)


The Value Chain Group’s Value Reference Model

We will ignore their Management processes and just focus on their core processes for now.

31


Level 2 Process Relationships and Measures Are Defined by VRM

32


Lifecycle Approach

A lifecycle approach can be used to develop an inventory of Level 1 and 2 processes

It can also be used to validate that a draft process architecture developed by other means is complete and has integrity

The sequence of processes in a lifecycle is demarked by major state changes between processes such as− a job applicant signs an employment agreement and becomes

a staff member− a new product is handed over to the sales team to sell

Internal processes move stakeholder relationships through a lifecycle of state changes − from unawareness through termination

Internal processes move Organization assets through a lifecycle of state changes− from idea through retirement

33


Non–verb structures disallowed:

NO stand alone nouns, suffixed nouns or gerunds:

Anything that ends in …ing …tion …ent …al

Business Process Semantics: Rules for Naming a Process

Strict Naming Structure:

A process isdescribed by an active verb-noun structure.

The intended purpose of the process must be in the name of the process.

34

Verbs to be wary of:

Anything that is lazy and not clearly result focused

manage handle process do

34


Examples of Generic Processes to Support Relationship Lifecycles

Large Customer Lifecycle– Make Customers Aware– Qualify Prospective Customers– Establish Customer Relationship– Fulfill Orders– Evaluate and Enhance Customer Relationship– Terminate Customer Relationship

Raw Material Supplier Lifecycle– Identify Potential Suppliers– Qualify Suppliers– Establish agreements with Suppliers– Source Raw Materials– Monitor Vendor-Managed Inventory– Evaluate and enhance Supplier Relationship– Terminate Supplier Relationship

Staff Lifecycle– Recruit & employ– Provide work environment – Compensate employees– Evaluate employees– Develop employees– Reward & motivate employees– Provide HR service for employees– Terminate Employment


Asset Lifecycles apply to all things in the Organization

• Brands• Products & Services• Orders• Finances• Strategies & Plans• Regulations• Policies & Rules• Information• Knowledge & IP• Business Processes• Facilities• Technologies• Raw Materials• Finished Goods• Supplies


Product / Service Lifecycle– Research Ideas– Develop Products and Services– Launch Products and Services– Produce Products and Services– Enhance Products and Services– Retire/ Replace Products and Services

Plan Lifecycle– Monitor Business Environment – Understand Markets– Develop Strategic Plan– Develop Market Strategy– Budget Resources– Execute Plan– Monitor Performance

Facility Lifecycle: Provide Working Facilities– Determine Facility and Equipment Requirements– Design Facilities– Build/ Acquire facilities and equipment– Operate Equipment– Maintain Physical Asset for Reliability– Retire Physical Assets

Examples of Generic Processes to Support Asset Lifecycles


Consolidate the Architecture: Financial Services Example

Manage Customer Relationships

CreateAwareness &

Interest

Develop Value

Develop the

Solution

Secure the

Business

Monitor &

Administer

Solution

Manage Partner Relationships

Provide Advisory Services

Provide Insurance Solutions

Provide Bonding Solutions

Provide Financing Solutions

DevelopPolicies

Improve &Transform the

Business

ManageExternal

Relationships

EnsureCompliance

Plan & ManageOperations

UnderstandMarkets &Customers

Design Products

& Services

DevelopBusinessStrategy

Govern the Business

Manage the Core Business

DefineStrategic

Intent

ManageKnowledge

ProvideFacilities &Supplies

ProvideIT Services

Manage Financial

Resources(Budget)

ProvideLegal

Services

Identify and Qualify Needs

Core Customer Value Chain

Manage Assets

Enable the Business

Customer Customer

Optimize Financial Assets

Proposition

ValueStreams

Core value chain

in corporate context

Manage Human

Relationships

Acquire Customer


Consolidate the Architecture: IT Department Example


Exercise 3: Workshop

• Identify the processes in lifecycles of the core stakeholder category of the pub: the patron

• Identify the processes in the lifecycle of the drinks consumed by patrons.

• Ignore for now the Management and Support Processes of the pub – we will add some together

• Guidelines

– Verbs please– 5-10 core processes– 16-20 total processes

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Section 4Process Scorecards


Performance Monitoring and Reporting

• Strategic Intent and Process Architecture decomposition provides the structure for a process scorecard

• Each process design project must build the measurement system as well as the process capabilities

• Develop the Strategic to Stakeholder to Process to sub process scorecard

• Gain a list of the existing scorecard measures

• Reconcile the two

• Build the reporting dashboards

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Functional vs. Process Measures

44


Process Centric Measurement Categories

Effectiveness and Quality:

Appropriateness of product or service

Customer Satisfaction Net Promoter Score Price Share of Spend Market Share Consistency Responsiveness Quality Standard

Compliance Defects Cost of Non Conformance

Efficiency:

Cost Resources expended

per unit of output Cycle time Wait time Processing time Percentage of value

added time Wastage Scrap Spoilage Other ratios of

resources and time

Adaptability: Time to market Time in market Time / cost to change Product and service

variability Work force capability Work force flexibility Job satisfaction Ability to handle non

standard requirements Time / cost for a special

request Special requests turned

down or escalated

Process performance must be directly traceable to strategic performance objectives

Common denominators are often related to Time, Cost, and Stakeholders Satisfaction

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Section 5Process Governance Frameworks


Determine Who Will Govern Each Value Chain, Value Stream and Process


Stewardship

Day to dayManagement

Day to dayExecution

Support

performance & improvement

feedback

feedback oneffectiveness of

enablers

design & improve process

conduct instance of

process

enabling resources(human, technical, infrastructural)

process approach & guidance

specific customer with specific need

Execute and manage a set of process instances

Improve and adapt a process

Govern all processes and their

management

Governance

develop & manage

governance framework

provideenablers

specific customer with specific solution

Governance : How many ROLES are needed and Who will perform them?

Develop and Support Process Capabilities and Resources

Intra-process issues

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Section 6Process/ Capability Alignment


Principles

ValuesStrengths

Products

Opportunities

Vision

Strategy

GoalsObjectives

RequirementsThreats

Constraints

StakeholdersValue Chains

Events

Responsibilities

Triggers Functions

Business Rules

Skills

Workflow

Procedures

Jobs

Roles

Information

Legal

Facilities

Knowledge

Financial Assets

DataTax

Objects Time

LocationsCost

Budget

Hardware Networks

Databases

Applications

Middleware

Systems

Methodologies

Tools

Weaknesses

Mission

Organizations

Models

Use Cases

Services

People Projects

Risks

Wh

y A

rch

itec

ture

an

d W

hy

Ob

ject

Rep

osit

orie

s

Processes


From Internal Process in Architecture or External Stakeholder


To Internal Process

in Architecture

or

External Stakeholder

From Internal Processin Architecture

or


Inputs

Outputs

Guides

Enablers

Do Something

Inputs are processed into Outputs according to Guides using Enablers when Events occur

Processes Interface Requirements: Look at IGOEs

Materials to be transformed

Information to be processed

States to be changed

Materials transformed

Information processed

States changed

Information to be referenced while

processing

Methods and Rules to guide the processing

Technologies to be applied

Facilities to be used

People to be assigned

53 53

Copyright © 2011 BPTrends Associates. All Rights Reserved. 54


or




To Internal Process

in Architecture

or


Inputs

Outputs

Guides

Enablers

Do Something


Information Alignment: Look at Architecture I/ O/ Gs

Information to be processed or updated

Information produced or updated by processing

Information to be referenced (but not changed) while

processing



To Internal Process

in Architecture

or



or


Inputs

Outputs

Guides

Enablers

Do Something


Knowledge, Policies and Rules Alignment: Types of Guides

Internal policies

Business rules

External Legislation, Regulations & Interpretations

Standards

PrinciplesStrategiesProcedures Experience

Best practices




or




To Internal Process

in Architecture

or


Inputs

Outputs

Guides

Enablers

Do Something


Process Capabilities Alignment: Look at Architecture Enablers

Capabilities employed to run process, access information, knowledge and

rulesIT HR Facilities


Section 7Leveraging the Architecture into Process Analysis & Design


The BPTrends Associates BPM Methodology

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Leverage Stakeholders and Architecture into Process Project: External to Process Context

Owners Regulatory/Governance

Community

Market KnowledgeSources

Raw MaterialSuppliers

Human ResourceRelated

IT Related Providers

Facility & Equipment Related Suppliers

Distributors

Customers &ConsumersX

X

X X

XX X

X

Scoped Process in Focus

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Starting with Stakeholder KPIs and Objectives for the ‘Organization-in-Focus’

Derive contributing KPIs for the ‘Process-in-Focus’

Establish target results to be deliveredby process improvement

SelectedProcess

Process Performance Objectives

Overall

Contribution to Overall

• Overall Customer Satisfaction: 5 to 9• Delivery Business Growth: 50%• Overall Customer Satisfaction: 5 to 9• Delivery Business Growth: 50%

• % orders delivered on time• Satisfaction with food delivered• % orders delivered on time• Satisfaction with food delivered

• On-time delivery: 80% in 6 months; 95% in 1 year

• Customer Satisfaction: 5 to 7/10 in 6 months; 9/10 in 1 year

• On-time delivery: 80% in 6 months; 95% in 1 year

• Customer Satisfaction: 5 to 7/10 in 6 months; 9/10 in 1 year

Identify Process and Project Performance Improvements Targets

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Process IGOEs & Internal/External Sources and Destinations

Inputs

Guides

Enablers

Outputs

Deliver Pizza Order

Request for Delivery Order

Customer Information

Delivery Status Request

Coupons

Payment

Rejected Order

Complaint

Order Ready for Packaging

Supplies

Packaged Order

Order Status

Coupons

Rejected Request

Complaint

Returned Order

Order Details

Order Payment

Customer & Order Info

Order SystemTelecom SystemCredit Card System

Restaurant Staff

Customer History Priority Order Status

Order Phone Rings

Delivery menu

Delivery Territory and Routes

Credit Policy

Health and Safety Policies

Driver Returns

AssignHuman

Resources

ProvideIT

Capability

Prepare Food

Purchase Supplies

Customer

Plan Restaurant Operations

Prepare Food

Update Finances

Provide Customer Services

Develop Marketplace

Strategy

Customer

Acquire and Maintain

EquipmentTaxi Company

Delivery vehiclesOrder Desk

Develop Marketplace

Strategy


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Process Interface Health Check

Inputs

Guides

Enablers

Outputs

Deliver Pizza Order


Customer Information


Coupons

Payment

Rejected Order

Complaint


Supplies

Packaged Order

Order Status

Coupons

Rejected Request

Complaint

Returned Order

Order Details

Order Payment


Order SystemTelecom SystemCredit Card System

Restaurant Staff

Customer History Priority Order Status

Order Phone Rings

Delivery menu

Delivery Territory and Routes

Credit Policy


Driver Returns

AssignHuman

Resources

ProvideIT

Capability

Prepare Food

Purchase Supplies

Customer


Prepare Food

Update Finances


Develop Marketplace

Strategy

Customer


EquipmentTaxi Company

Delivery vehiclesOrder Desk

Develop Marketplace

Strategy

Provide Customer ServicesSource of major

performance problems

Source of minor performance problems

No significant issues

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Business Process Project Change Scope Diagram

VS010 v1.163


Exercise 4: Process Project Scope

Which connecting processes should be analyzed in the project along with the chosen process?

1. Identify

1. Review the Process Architecture Diagram and Stakeholder list

2. Find the processes and stakeholders that connect to the process

3. List THREE IGOEs to and from connecting stakeholders and / or processes

2. Analyze

1. Assess the health of each IGOE

Red – big gap Yellow/Amber – moderate gap or more research needed Green – performs well

2. Determine the project scope to be analyzed by drawing the scoping boundary line for the project

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Business Process Modeling: Options

Take Order

Cus

tom

erFi

nanc

ial

Ana

lyst

Cus

tom

er

Ser

vice

Cre

dit A

dvis

orO

rder

Tak

er

Take Request

Determine Charges

Advise Customer

Check Credit

Fill Out Kitchen Request

Place an

Order

Rejected Credit

Credit OK?

YesNO

Kitchen Request

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Find the stakeholder experience touch points and segment into 3-7 activities.

Assign activities to team members and gather information associated with IGOEs

Take Order

Deliver Order

Schedule Delivery

Prepare Food

Decompose process into logical sub-processes or activities

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Inputs

Guides

Enablers

Outputs

Prepare FoodSupplies


Food Ready Notification

Restaurant StaffCook

Order Details Priority Order Status

Order Details Received

Recipes



AssignHuman

Resources

Purchase Supplies



Equipment

Kitchen Facilities


Take Order

Schedule Delivery

Deliver Order

An IGOE at the Next Level

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Take Order

Deliver Order

Schedule Delivery

Prepare Food

Rationalize IGOEs and produce process chart for the scoped process improvement

Inputs

Guides

Enablers

Outputs

Deliver Order

Inputs

Guides

Enablers

Outputs

Schedule Delivery

Inputs

Guides

Enablers

Outputs

Prepare Food

Inputs

Guides

Enablers

Outputs

Take Order


Customer Info


Order Phone Rings

Customer History

Credit Poilcy

Delivery Menu

Delivery Territory and

Routes

Order System

Restaurant Staff

Credit Card System

Telecom System

Restaurant Staff


Routes

Delivery Route

Order Satus

Rejected Request


Order Details

Payment Method

Supplies

Cook Kitchen Facilities

Priority Order Status

Health & Safety Policies

Recipes


Delivery Vehicles


Transportation Ready


Driver Delivery Vehicles

Coupons

Payment

Complaint

Rejected Order

Packaged Order

Coupons

Complaint

Order Payment

Returned Order

Drivers

Order Desk

Note: This chart representation is the analyst’s view. Keep it simpler for management and non-technical types

68


Inputs

G u id e s

E n a b le rs

Outputs

D e live r O rd e r

Inputs

G u id e s

E n a b le rs

Outputs

S ch e d u le D e live ry

Inputs

G u id e s

E n a b le r s

Outputs

P re p a re F o o d

Inputs

G u id e s

E n a b le r s

Outputs

T a ke O rd e r

R e s ta u ra n t S ta ff

C o o k

D rive r

C u s to m e rInputs

G u id e s

E n a b le rs

Outputs

R e ce ive O rd e r

Inputs

G u id e s

E n a b le r s

Outputs

P la ce O rd e r

Add organizational roles and responsibilities and validate hand-offs

BPMN Core Notation or Swim Lanes

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M3

M2

M1

TakeRequest

Deliver Pizza order

CustomerDeter.

ChargesTake

Request

M3

M2

M3

M2

Take Order Prepare Food Schedule Delivery

Deliver Order

DetermineCharges

AdviseCustomer

CheckCredit

Fill OutKitchen Req.

etc,etc.

Deliver OrderSchedule DeliveryPrepare FoodTake Order

Hierarchy of Contributing Measures

M2 M2 M1

M3

70


IGOE-based Model Opportunity Assessment

Inputs

Guides

Enablers

Outputs

Deliver Order

Inputs

G uides

Enablers

Outputs

Schedule Delivery

Inputs

Guides

Enablers

Outputs

Prepare Food

Inputs

G uides

Enablers

Outputs

Take Order


Customer Info


Order Phone Rings

Customer History

Credit Poilcy

Delivery Menu


Routes

Order System

Restaurant Staff

Credit Card System

Telecom System

Restaurant Staff


Routes

Delivery Route

Order Satus

Rejected Request


Order Details

Payment Method

Supplies

Cook Kitchen Facilities

Priority Order Status


Recipes


Delivery Vehicles


Transportation Ready


Driver Delivery Vehicles

Coupons

Payment

Complaint

Rejected Order

Packaged Order

Coupons

Complaint

Order Payment

Returned Order

Drivers

Order Desk

Source of major performance problems

Source of minor performance problems

No significant issues

• Root Causes Flow Upstream:• Start bottom right and proceed with

dots/shapes to top left

Take Order

Deliver Order

Schedule Delivery

Prepare Food

Look for green and yellow in and red out

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Inputs

Outputs

Guiding Factors

Enabling Factors

Inputs Outputs

Enablers

Guides

Business Rules

Along with process models, events, data definitions and performance specs, Business Rules (guides to a process) should be documented as part of IT Requirements.

Define events with possible input conditions for processes and then ask what rules must and must not happen when that occurs.

Processes deliver results or status depending on the invoked rule’s action.

This is often a new event to trigger another process Processes invoke a series of rules (constraints or guidelines) for business

decisions and process navigation

Business Rules As Process Guides and IT Requirements

This means that the exact path of a process instance

may not be predictable

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Process Scenario Validation Matrix:Current Process Validation

For Process: Deliver Pizza Order Trigger: Order Phone Rings

Condition 1 Condition 2 Condition 3 Condition 4 OutcomeEstimate of Likelihood

Scenario Type of Contact Type of Customer Type of Order Type Of Payment

1 Order Repeat Same as previous Credit CardQualified Customer - Delivered Pizza 7.1%

2Order

Repeat Same as previous CashQualified Customer - Delivered Pizza 7.9%

3Order

Repeat Same as previous Inability to PayRejected Request or Returned Pizza 0.2%

4Order

Repeat Different Credit CardQualified Customer - Delivered Pizza 11.0%

5 Order Repeat Different CashQualified Customer - Delivered Pizza 9.3%

6 Order Repeat Different Inability to PayRejected Request or Returned Pizza 0.2%

7 Order New New Credit CardQualified Customer - Delivered Pizza 17.6%

8 Order New New CashQualified Customer - Delivered Pizza 34.8%

9 Order New New Inability to PayRejected Request or Returned Pizza 2.1%

10 Complaint N/A N/A N/AResolution with or without coupons 6.2%

11 All other calls N/A N/A N/A various 3.6%

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A Software Requirement

• A Software Requirement defines a capability or behavior that a software system must have to support users.

• Users may be customers or employees involved in executing a business process.

• Assuming the business process team has already defined a To-Be process, we should assume the process is aligned with the organization’s strategic intent.

• The goal of the Software Requirement is to pass information to the software development team to enable them to create software that fulfills the needs of the To-Be business process

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Who Is Involved in Defining Software Requirements?

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Getting from Redesign to Requirements

76


Section 8Conclusion


How Mature is Your Organization?

78


The BPTrends Associates BPM Methodology Emphasis and Process Maturity

Level 3

Level 2

Level 4

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BPM Connects Business Strategy with Business Capabilities and Maintains Integrity

Architecture, Prioritization, Measurement, Management, Alignment & Control of All Process Change

Process Change ProjectsDocumentation Improvement Redesign Innovation

.

Human Resource Development

Job DesignTraining Knowledge

Management

Specific Activity

Business Process

Physical Plant and

IT Development

BPMS, BAMProcess Automation

Hardware Used

A Mix of IT and HR

Development ERP Implementation

ImplementationAutomation Employee/Job ChangesFacilities Changes

Strategy and Business ManagementBPM

Perspective

Six Sigma, Lean, Process Improvement Perspective

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How to think about Business Processes

• Business Processes:

– As Assets to be managed in a lifecycle

– As vehicle for Alignment with other capabilities to meet strategic intent

– As the basis for Performance Improvement

– As the foundation for BusinessGovernance over performance and change

– As the organizer of IT and Human Requirements

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