Business Process Management by Roger Burlton

PROCESS RENEWAL GROUPPRG-Architecture-1

Business Process ManagementThe Foundation for Alignment and Traceability

Roger T. BurltonThe Process Renewal Consulting Group Inc.

www.processrenewal.com+1-604-945-7352

[email protected]


Copyright

Business Process Management:

This seminar contains proprietary methods and materials developedby The Process Renewal Consulting Group Inc..

They may not be copied, recorded, transmitted or reused without theexpressed permission of the author. All rights reserved.


Time To Profit


Improving Time To Profit and Time in Profit

Reduce Costs Reduce Time to Market

Increase Revenue


Provide Capability

The Role of Process in Business Performance

Owner'sRequirements

Rules andRegulations

Consumable Resources

Business

CustomerLoyaltyCustomer Requirements

Data

100110011110011010010100111010101100

Information andKnowledge

BusinessPressures

Goods and ServicesProcesses

FacilitiesC & C Technology Staff

Understand


BusinessEnvironment

Understanding

StakeholderRelationshipManagement

KnowledgeManagement

ProcessManagement

TechnologyManagement

As business product cycles are changing more and more rapidly and each organization is required to form an individual and unique relationship with each of its customers and other stakeholders, only flexible processes and maneuverable technologies can enable knowledgeable staff to make the commitments required to continuously adapt.

Alignment of Critical Competencies


Balanced Scorecard:No single measure is sufficient: we must have multiple areas of focus

Traditionally – Financial bottom line

Now we need other indicators such as customer satisfaction, internal processes and innovation and learning

We need predictive measures not just after the fact reports.

The construction of a connected measurement system is critical to take overall targets, and develop strategy down to the level of what people do every day.

“What you measure is what you get” Kaplan and Norton.

Strategy and Measurement in the Knowledge Age


Stakeholder* Relationship Management:

Multiple Stakeholders Play a Role

What happens if any one is missing or ignored?

* A Stakeholder is anyone or any group that has a vested interest in or can influence the organization’s performance.

Suppliers

Staff

Community

Customers

Owners

Enterprise

Itself

What happens if the

requirements are in conflict?


Explicit Relationship Attributes

Current StateFor Each Type & Sub Type• Values / Principles• KPI’s and Actual Performance

Measurements• Interactions

• Business Events / Outcomes• Flows (Things, Data,

Knowledge, Commitments)• Health

Future StateFor Each Type & Sub Type• Values / Principles• Vision / Expectations• KPI’s and Performance Targets• Interactions

• Business Events / Outcomes

• Flows (Things, Data, Knowledge, Commitments)

• CSF’s

Start with the Customer Lifecycleand then work to the Suppliers /

Partners and then other supporting relationships in the value chain


Start with the criteria for the Customer Relationships then look at theSupplier and Partner Relationships which are critical to the value chain and then look at any others that may be required.

From Customers to Other Stakeholders

Organizationin Focus

Customer Type 1

Customer Type 2

Customer Type 3

Supplier Type 1

Supplier Type 2

Staff

OwnersCommunity Start with

these

Then do the rest

Then these


Evaluation Criteria for Planning, Prioritization and Decision Making

What criteria will your organization use to decide among competing options for change ?

Without Business Context these questions cannot be answered:

BusinessDrivers

BusinessStakeholder

Strategy

ProcessMgmt

BusinessContext

What? How?Where?

When?Who?

Why?

Whence?

N


The complex Stakeholder Relationships can only be managed through Business Processesworking at optimum performance.

Process Management

Customer Type 1

Customer Type 2

Customer Type 3

Supplier Type 1

Supplier Type 2

Staff

OwnersCommunity

Everything which flows must link to at least one process


Business Process as Primary Enabler

Is triggered by an external event involving a stakeholder

Is comprised of all the actions necessary to provide the appropriate business outcomes in response to the triggering business events.

Transforms inputs of all types into outputs, according to guidance(policies, standards, procedures, rules etc.), employing reusable resources of all types.

Contains logical steps which usually cross functions and often organizational units.

Has performance indicators for which measurable objectives can be set and actual performance evaluated.

Delivers a product or service to an external stakeholder or another internal process

Capture

Trigger

Manipulate/Transform

Retrieve

Store




Guide

Enable

DeliverOutcomes

Anatomy of a ProcessHand-off


CORE business processes are linked directly to external customers and require knowledge to deliver optimum value.

GUIDING business processes provide direction, rules and practices by embedding or embodying knowledge.

ENABLING business processes provide facilities, tools and access mechanisms to embedded or embodied knowledge.

Objects of Process Transformation :

Physical Materials

Data / Information

Commitments

Knowledge

Process and Knowledge Interdependence


Sample Process Architecture Diagram

Note:

Lines represent major relationships only !

Note:

Lines represent major relationships only !

8. Provide Post Sales

Service

Guides to all Other

Processes

7. Supply Human

Resources

5. Develop and Maintain

Facilties (Need to

Retirement)

16. Purchase Supplies / Manage Logistics

9. Plan Strategies

10. Set Policy, Rules,

Interpretations

2. Change Processes

and Enablers

12. Provide Information Technology

Services

11. Provide Financial Services

14. Ensure Compliance

Enablers to all Other

Processes

6. Report Business Results

14. Develop Products

13. Understand Market and

Acquirre Customers

3. Make Customers

Aware

4. Manufacture /

Acquire Product

1. Fulfill Orders


Greatest Affinity / Importance Ranking

Biggest

Gap

Ranking

1 12 33 44 85 56 137 168 149 6

10 1511 712 1213 214 915 1016 11

16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

1

2

3

Process Migration Strategy

Process Number


123456789

1011121314151617181920

20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Knowledge Area Affinity / Business Value Rank

Accessibility

Gap

Rank

Knowledge Area Migration Strategy


123456789

10111213

13 12 11 10 9 8 7 6 5 4 3 2 1

Technology Potential Rank

Ease

of

Deployment

Rank

Technology Migration Strategy


Business Strategy

Business Architecture

Program Management

Alignment: The Basis for Traceability

Business Process

Architecture

Technology Architecture

Information Architecture

Org/HR Strategy

OtherStrategies

Migration Strategy

Project Portfolio

Business Drivers

Business Stakeholder

Strategy

ProcessMgmt

AlignmentTraceability


The ongoing delivery of measurable business performance through synchronized optimization of:

whole processes

their guiding factors

their enablers

What is Business Process Management ?

Local Resturant

Finance & Administration

Marketing & Sales

Purchasing

Transporation

CateringBanquet Services

Accounts Payable

Accounts Receivable

Legal Sevices

Faciliticies Management

Human Resources

Customer Service Information Systems

Operations

Food Preparation

Logistics

Credit

Delivery

Roles& Jobs

Organization

StructurePolic

ies,

Rul

es,

Regu

latio

nsFacilities

Processes

Business

BusinessPerformance

Human

Resources Com

putin

g &

Com

mun

icat

ions

Tech

nolo

gy


The Process Management Framework

BusinessContext

Architect&

Align

Vision

Understand

Renew

Redevelop

Implement

Nurture &Continuously

Improve

Political Commitment Management• Awareness• Understanding• Willingness

Quality / Risk Management• Risk / Reward• Gating Checkpoints• Resource Commitment• Opportunity Cost

Project Management• Communications• Perceptions• Commitments

Technology Enablers• Infrastructure• IT Applications• Communications• Front End Devices

Human Enablers• Skills• Capabilities• Attitudes• Incentives


Required Reading

For articles, training courses and professional services in Process Management, see

www.processrenewal.com or contact Roger Burlton [email protected]

Business Process Management by Roger Burlton

Business

Transcript of Business Process Management by Roger Burlton