Business Process Management 101 Training

Business Process Management (BPM) 101

Training Workshop

Franco Pang

• At the end of the training, participants will be able to:

– Understand what Business Process Management (BPM) is about

– Understand what APQC’s Process Classification Framework is and

how it is applied

– Model business processes by applying BPMN2.0 standard

– Use Sparx EA software to model business processes

– Facilitate a process mapping workshop independently and confidently

Introduction

Agenda

1. Business Processes Management (BPM)

2. APQC’s Process Classification Framework (PCF)

3. Modelling Business Processes with BPMN2.0

4. Organising a Process Modelling Workshop

5. Modelling Business Processes Using Sparx EA

6. Q&As

Business Process Management (BPM)

• Organised groups of related activities that create values to the customers

What are Business Processes?

Input Output

Process Flow

E.g.: Sort letters at distribution centres

E.g.: Letters arrive at distribution

centres

E.g.: Letters as sorted to destinations


Why are we

doing this?

There is no

process at all

I need to improve the

process in my team but

don’t know where to start

SOPs are so

outdated

Why are process

maps in so many

different formats?

Processes are

not documented

anywhere

I talk to five persons

about the same

process and hear

five different stories

• Are these observations and experience familiar to you?

• Business Process Management is about:

– Defining business processes (understanding / visibility)

– Organising business processes (content management)

– Optimising business processes (maturity)

– Supporting programmes and projects (capability)

– Aligning business processes with business strategies (sustainability)

– Defining the right process modelling and improvement methods, tools

and standards (governance)

• What should we focus? Where is the priority?



Process Maturity

Process Maturity Model

Level 1

Initial

Level 2

Repeatable

Small scale processes;

understood and repeatable

Level 3

Defined

Level 4

Managed

Level 5

Optimised

• A key goal of BPM is to raise an organisation’s process maturity level:

Processes are measure and

controlled

Ad-hoc and chaotic processes

Processes documented and

standardised across organisation

Collaborative, continuous

improvement culture


Process Maturity

• Cost Avoidance

• Maximize Value to Customers

• Customers’ Confidence

• Accountability & Efficiency Across All Ranks

• Operational Consistency

•Clarity/Transparency

• Distribution of Policies & Standard Procedures

• Culture of Collaboration & Knowledge Sharing

• Benefits of achieving a high process maturity level:

Discussion: Process Maturity

Process Maturity Model

Level 1

Initial

Level 2

Repeatable

Small scale processes;

understood and repeatable

Level 3

Defined

Level 4

Managed

Level 5

Optimised

• Think about 1- 3 business processes that you are familiar with

• Which process maturity level do you think (or feel) each process is sitting

at?

Processes are measure and

controlled

Ad-hoc and chaotic processes

Processes documented and

standardised across organisation

Collaborative, continuous

improvement culture

APQC’s

Process Classification Framework (PCF)

American Productivity & Quality Centre (APQC)


• PCF: A framework of cross-functional business processes commonly found

in most organisations (in public and private sectors)

• The framework has a multi-dimensional coverage:

– Horizontal: Twelve process categories which cover major enterprise

functions comprehensively

– Vertifical: Five-level process hierarchy which defines processes from

enterprise-level overview down to task-level view



Op

era

tin

g

Pro

ce

sse

s

Ma

na

ge

me

nt

& S

up

po

rt

Pro

ce

sse

s

1.0

Develop

Vision &

Strategy

2.0

Develop &

Manage

Products &

Services

3.0

Market &

Sell

Products &

Services

4.0

Deliver

Products &

Services

5.0

Manage

Customer

Service

6.0

Develop &

Manage

Human

Capital

7.0

Manage

Information

Technology

8.0

Manage

Financial

Resources

9.0

Acquire,

Construct &

Manage

Assets

10.0

Manage

Enterprise

Risk &

Compliance

11.0

Manage

External

Relation-

ships

12.0

Develop &

Manage

Business

Capabilities

Task

Decomposition of activities Example: Call customers

Activity

Key events when performing a process Example: Respond to customer requests / inquiries (10396)

Process

Interrelated activities Example: Manage Customer Service Requests / Inquiries (10388)

Process Group

Groups of related processes Example: Plan & Manage Customer Service Operations (10379)

Category

Highest level of processes within an organisation Example: Manage Customer Service (10006)



• End-to-end view on business processes within an organisation (clarity)

• Organise business processes more systematically and effectively

(content management)

• Align an organisation’s business processes with its strategic goals

(alignments)

• More rigorous and objective comparisons of process effectiveness

within or across organisations (benchmarking)

• Avoid any ‘federalism’ concerns, e.g. something which only works for

part of the orgnisation but not the other (neutrality)

APQC’s Process Classification Framework (PCF)

How does PCF Help Us?

Modelling Business Processes

with BPMN2.0

• What are the differences between Business Process Modelling and

Business Process Management?

Business Process Modelling Business Process Management

An activity A business function

More defined outputs Less tangible outputs

Specific focus (produce process

models)

Wider focus (drive process maturity and

improvement)


• Process models: Visual representation of sequential flow and control logic

of a set of related activities

• Two main types of process models:

– Current state (‘As-Is’)

– Future state (‘To-Be’)

• Other common documents which describe business processes are SOPs,

training manuals, etc.

– Review these documents critically before you use them because:

• They may be outdated, incomplete or incorrect

• They may not show hidden processes


• Determine a suitable approach (top-down vs. bottom-up):

• Define process model boundaries (scope)


How to Model a Process?

Top-down Bottom-up

Complicated processes Well-defined processes

Involving many business units Involving a single or a few business

units

Help process modelling to stay in

scope Increase process modelling’s efficiency

Depend on projects’ requirements

• Conduct SIPOC* and document analysis

– Review existing SOPs, policies, training manuals, etc.

– Develop SIPOC

* SIPOCs: Supplier-Input-Process-Output-Customer Matrix

• Engage with stakeholders involved to discover how the process is being

operated

– The six basic questions: Who, What, When, Why, How & Where

– Process modelling workshops provide good opportunities for

facilitating modelling and stakeholder engagement



• Good process models have the following features:



Individual Process Models Inter-related Process Models

Have a clear description Linked to other process models logically

Have a clear process owner Consistency on the level of details

presented

Have a logical start and end Aligned with APQC’s Process

Classification Framework

Have a clear ‘last update’ date

Consistent use of notations across

different process models

Use correct process modelling

notations

Discussion: Modelling Business Processes

• What do you think about the qualities of these process model examples?

• What is BPMN2.0?

– A standard of modelling business processes

• Benefits of using BPMN2.0:

– Consistent styles and formatting

– Process model can be compared and reused more easily

– Support enterprise content management

Business Process Modelling Notation (BPMN)

2.0

BPMN2.0 Key Notations


• Pools: Define a group of participants that collaborates within a process

– Examples: Customers, Border Agencies, etc.

• Lanes (Swimlanes): Define a specific participant or role within a process

– Examples: Delivery Branches, Distribution Centres, etc.


• Start: Indicate triggers of the process

• End: Indicate end deliverables of the process


• Tasks (activities): Describe ‘how’ a process functions or operates

• A ‘verb + noun’ structure

– Examples: deliver items, enter customers’ details, etc.


• Sometimes a group of related tasks operate within a process; those tasks

can be grouped indicated as a sub-process

– Example: Border agency inspection (a sub-process)

• Broken into x-ray items, conduct bio-security assessment, etc.

(tasks)


• Sequence flows: Indicate sequential order of activities

• Message flows: Indicate information flow

•


• Gateways: Indicate decisions made in a process


• Data objects: Indicate artifacts of information which flow through a process

(e.g. notifications, etc.)

• Data stores: Indicate a medium (physical or system) where data is read or

written

• On the sample process model, what BPMN2.0 notations are used

correctly? What notations are used incorrectly?

Discussion: BPMN2.0

Process Modelling Workshops

• What is a process modelling workshop?

– A facilitated session to discuss how a business process operates,

should operate, or will best operate

• Key benefits:

– Help identify and understand a process ‘as you know it’

– Engage with stakeholders on the consultation process


• Why do we need to conduct a process modelling workshop?

– A business process usually involves multiple business units

• Important for all stakeholders to provide their inputs

– Most projects involve stakeholders which do not operate the processes

directly but have interests on them, e.g. Legal, Risk & Assurance, etc.

• Workshops ensure that their concerns are expressed


• These workshops are suitable if:

– You are modelling a process which involves different business units or

locations

– You are modelling a complicated or sensitive process

– You are driving a process change or improvement where impacts are

uncertain

– You are doing process analysis or improvement for a project which

involves multiple stakeholders


• Define workshop’s goal(s) clearly

– Avoid trying to model a process and ask for improvement ideas at

the same time

• Think about workshop participants

– A mixture of operations leaders and subject-matter experts (SMEs)

is usually preferred

– Strategic leaders are usually not mandatory, unless: (i) you want

them to define scope of the work; (ii) or you want their support to

kick-start the workshop

• Think about what level of details you will need to dig down in the

workshop

– If a high-level process model overview is sufficient for your analysis,

do not be tempted to drill down to low-level details

• Prepare visual aids to be used in the workshop (e.g. post-it notes, etc.)


Planning a Workshop

• Provide background info to participants – project scope, process

boundaries, etc.

• List down all processes to be covered in the workshop – prioritise with

participants if time is limited

• Draw an empty process model ‘frame’ on a whiteboard (or a wall if it can

be used for this purpose)

• Ask questions (can be generic or specific, depending on participants) –

use post-it notes to show them on the whiteboard or wall

• Ask for exceptions and variations

Process Modelling Workshop

Conducting a Workshop

• Use SIPOC* to build a ‘big-picture’ understanding

• If participants’ understanding (or viewpoints) to a process are conflicting

to others

– Do not rule them out unless you are clear they are unacceptable

legally or policy speaking

• It is a discovery process: Do not try to limit to what you (or participants)

know and think the process should be

Process Modelling Workshop

Conducting a Workshop


Using Sparx EA

Modelling Business Processes Using Sparx EA

Software Demonstration

Questions & Answers

The End

• Are Business Process Models the same as SOPs? No

Appendix

Business Process Models vs. Standard

Operating Procedures (SOPs)

Business Processes SOPs

• Diagrammatic representation • Written instructions (mainly)

• Show end-to-end organisational

view

• Show sequential flow of activities

(tasks)

• Understand how processes deliver

values

• Ensure a consistent quality of

process outputs

Appendix

Developing SOPs: Recommended Practice

Before Development Starts:

• Chose the right people to develop SOPs

• Develop a SOP checklist

During SOP Development:

• Use a SOP checklist

After SOPs are Developed:

• Chose the right SOP reviewers and approvers

• Conduct peer reviews on SOPs

• Test SOPs

• Place SOPs in visible locations (e.g. labelled binders reachable by end-

users)

• Keep SOPs updated (half-yearly or annually)

Appendix

Developing SOPs: Recommended Practice

Content:

• Use active voice and present-tense verbs (e.g. ‘Remove any empty trays from

holder’, instead of ‘ensure empty tray has been removed from holder’

• Present information in unambiguous ways

Formatting:

• Follow a step-by-step format (e.g. bullet points)

• Keep SOPs concise

• Have a clear ‘table of content’

Organisation:

• Good document controls (e.g. clear SOP title, ID, version number, effective date,

document owner)

• Use flowcharts to illustrate the workflow covered on SOPs

• Be consistent in writing styles if SOPs are developed by different parties

Business Process Management 101 Training

Leadership & Management

Transcript of Business Process Management 101 Training