Download - Managing Process Portfolios and Change Using Organisational Models Professor Aditya Ghose Director, Decision Systems Lab School of IT and Computer Science.

Managing Process Portfolios Managing Process Portfolios and Change Using and Change Using

Organisational ModelsOrganisational Models

Professor Aditya GhoseProfessor Aditya Ghose

Director, Decision Systems LabDirector, Decision Systems Lab

School of IT and Computer ScienceSchool of IT and Computer Science

University of WollongongUniversity of Wollongong

[email protected]@uow.edu.au(with George Koliadis and Moshiur Bhuiyan)(with George Koliadis and Moshiur Bhuiyan)

Decision SystemsLaboratory

University ofWollongong

mailto:[email protected]

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Decision Systems LaboratoryUniversity of WollongongDecision Systems LaboratoryUniversity of Wollongong

The thing with bold The thing with bold ideas…ideas…

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Current DSL research Current DSL research on process governanceon process governance

Business process lifecycle managementBusiness process lifecycle management Enterprise process architecturesEnterprise process architectures Compliance managementCompliance management Process optimizationProcess optimization

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OutlineOutline

Two problems:Two problems: Process Lifecycle ManagementProcess Lifecycle Management

Change ManagementChange Management Process Portfolio ManagementProcess Portfolio Management

Three (closely related) solutions:Three (closely related) solutions: The The Enterprise Process Governance (EPG) Enterprise Process Governance (EPG)

methodologymethodology The The Process and Enterprise Model Relationship Process and Enterprise Model Relationship

(PEMR) (PEMR) methodologymethodology The The Enterprise Process Lifecycle Manager Enterprise Process Lifecycle Manager

(EPLM) (EPLM) tooltool

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Business Process Business Process LifecycleLifecycle

Discovery

Design

Deployment

Enactment

Monitoring

Analysis

Completion

Adapt /

Control

Re-Deploy

Re-Design

Re-Discover

Phase Change

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Business Process Change Business Process Change (1/2)(1/2)

Change drivers:Change drivers: Operational:Operational:

Process improvement/optimisationProcess improvement/optimisation Dynamic Dynamic operational operational contextscontexts

Organisational:Organisational: Altered organisational structuresAltered organisational structures Dynamic inter-relationships between Dynamic inter-relationships between

organisational actorsorganisational actors

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Business Process Change Business Process Change (2/2)(2/2)

Should we implement change?Should we implement change? What will the impact of change be (What will the impact of change be (impact analysisimpact analysis)?)? How should we implement change?How should we implement change? What alternative ways of implementing change do we What alternative ways of implementing change do we

have available?have available? Which of these should we choose (Which of these should we choose (trade-off analysistrade-off analysis)?)? How should we monitor the implementation of change?How should we monitor the implementation of change? What lessons do we take away from the change What lessons do we take away from the change

implementation process?implementation process?

Pain Point: Pain Point: We do not have a We do not have a processprocess for process change for process change

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Impact analysis (1/2)Impact analysis (1/2)

Operational changes can make:Operational changes can make: The changed process infeasibleThe changed process infeasible The changed process inconsistent (more The changed process inconsistent (more

on this later!) with other processeson this later!) with other processes Degrade quality of service (QoS)Degrade quality of service (QoS) Modifications to organisational Modifications to organisational

structures necessarystructures necessary Gaps in inter-relationships/inter-Gaps in inter-relationships/inter-

dependencies between organisational dependencies between organisational actorsactors

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Impact analysis (2/2)Impact analysis (2/2)

Organisational changes can make:Organisational changes can make: Existing process infeasibleExisting process infeasible Existing processes inconsistent with other Existing processes inconsistent with other

processes and with the current organisational processes and with the current organisational contextcontext

Degrade quality of serviceDegrade quality of service Impact analysis helps answer the question:Impact analysis helps answer the question:

Should we implement the change request?Should we implement the change request?

The answer is The answer is yes yes if:if: The impact of change is The impact of change is

manageable/acceptablemanageable/acceptable

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Trade-off analysisTrade-off analysis

A given change request can be implemented in A given change request can be implemented in multiple, alternative waysmultiple, alternative ways

These alternative may perform differently under These alternative may perform differently under QoS metricsQoS metrics

The impact of these alternatives may varyThe impact of these alternatives may vary Both impact and QoS performance assessments Both impact and QoS performance assessments

must form the basis for decisions on which must form the basis for decisions on which alternative to adoptalternative to adopt

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Enterprise process Enterprise process architecturesarchitectures

Definition of Definition of Business Process ArchitectureBusiness Process Architecture from the from the BPTrends Glossary:BPTrends Glossary:

A process architecture is a written or diagrammatic A process architecture is a written or diagrammatic summary of the value chains and business summary of the value chains and business processes supported by a given organization. A processes supported by a given organization. A good process architecture shows how value chains good process architecture shows how value chains and business processes are related to each other and business processes are related to each other and to the strategic goals of the organization. Some and to the strategic goals of the organization. Some companies use the term process architecture to companies use the term process architecture to refer to the process diagram for a single process. refer to the process diagram for a single process. We refer to that as a process model or process We refer to that as a process model or process diagram. We often add business or enterprise to diagram. We often add business or enterprise to process architecture to suggest that it's a high-level process architecture to suggest that it's a high-level architecture of all of the processes in the architecture of all of the processes in the organization. organization.

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The enterprise process The enterprise process portfolio management problem portfolio management problem

(1/2)(1/2) What are the processes in an enterprise? What are the processes in an enterprise? At what level of granularity should they be At what level of granularity should they be

represented? represented? How does the process portfolio relate to How does the process portfolio relate to

the enterprise value chain (i.e., which the enterprise value chain (i.e., which processes services each component of the processes services each component of the value chain)?value chain)?

What is the relationship between the What is the relationship between the process portfolio and a (more fine-grained) process portfolio and a (more fine-grained) functionality map? functionality map?

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The enterprise process The enterprise process portfolio management problem portfolio management problem

(2/2)(2/2) What is the process ownership structure What is the process ownership structure

(i.e., which enterprise actor/role owns (i.e., which enterprise actor/role owns which process)? Sometimes these would which process)? Sometimes these would involve cross-ownership. involve cross-ownership.

How does the process portfolio relate to How does the process portfolio relate to inter-actor dependencies?inter-actor dependencies?

How can metrics (both functional and non-How can metrics (both functional and non-functional) be extracted from the EPA? functional) be extracted from the EPA?

How can EPA be designed backwards from How can EPA be designed backwards from enterprise-level KPIs? enterprise-level KPIs?

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Mapping the Mapping the enterpriseenterprise

Common to both lifecycle and process portfolio Common to both lifecycle and process portfolio managements problems is a requirement for managements problems is a requirement for detailed detailed enterprise mapsenterprise maps

An enterprise map must include:An enterprise map must include: Value chainsValue chains A structure mapA structure map A goal/objective mapA goal/objective map A capability mapA capability map A relationship mapA relationship map A risk mapA risk map

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Enterprise structure Enterprise structure mapsmaps

Who are the key enterprise actors?Who are the key enterprise actors? These could be: divisions, business units, These could be: divisions, business units,

departments, rolesdepartments, roles What are their structural relationships?What are their structural relationships?

These could be:These could be: ““Part-of” relationships, e.g., “ business unit X is part Part-of” relationships, e.g., “ business unit X is part

of division Y”of division Y” ““Member-of” relationships, e.g., “role X is a member Member-of” relationships, e.g., “role X is a member

of department Y”of department Y” ““Is-a” relationships (i.e., specialization/generalization Is-a” relationships (i.e., specialization/generalization

relationships), e.g. “a department head is a contract relationships), e.g. “a department head is a contract signatory authority”signatory authority”

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Enterprise goal/objective Enterprise goal/objective mapsmaps

What are the enterprise-level What are the enterprise-level goals/objectives?goals/objectives?

How are these decomposed into sub-goals How are these decomposed into sub-goals etc.?etc.?

What are the actor/role/unit-level What are the actor/role/unit-level goals/objectives?goals/objectives?

How do these support enterprise-level How do these support enterprise-level objectives?objectives?

What are the What are the softgoals softgoals (or optimisation (or optimisation objectives), (e.g., minimize lead time for objectives), (e.g., minimize lead time for priority customers)?priority customers)?

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Enterprise capability Enterprise capability mapsmaps

What functionalities does the enterprise What functionalities does the enterprise support, i.e., what can the business do? support, i.e., what can the business do? What What taskstasks is it capable of executing? is it capable of executing?

What functionalities do enterprise What functionalities do enterprise actors/sub-units support?actors/sub-units support?

What are the hierarchical relationships What are the hierarchical relationships between these functionalities?between these functionalities?

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Enterprise relationship Enterprise relationship mapsmaps

How do enterprise actors relate to each How do enterprise actors relate to each other at a functional (as opposed to other at a functional (as opposed to structural) level?structural) level?

What are the inter-dependencies between What are the inter-dependencies between enterprise actors?enterprise actors?

How critical are these dependencies? Does How critical are these dependencies? Does an actor depend entirely or partially on an actor depend entirely or partially on another actor to support certain another actor to support certain functionalities? Is the dependence only to functionalities? Is the dependence only to improve QoS?improve QoS?

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Enterprise risk mapsEnterprise risk maps

What are the critical actors?What are the critical actors? What are the critical What are the critical

inter-relationships/dependencies?inter-relationships/dependencies? What are the vulnerable actors?What are the vulnerable actors? What are the vulnerable What are the vulnerable

inter-relationships/dependencies?inter-relationships/dependencies? What cumulative risk assessments can one make What cumulative risk assessments can one make

from an enterprise map?from an enterprise map?

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The The Enterprise Process Enterprise Process Governance (EPG) Governance (EPG)

methodologymethodology Document enterprise processesDocument enterprise processes Define enterprise mapsDefine enterprise maps Relate processes to capabilities/functionalities in the capability Relate processes to capabilities/functionalities in the capability

map via map via process-capability linksprocess-capability links For operationally-driven changes:For operationally-driven changes:

Identify scope of change on existing processesIdentify scope of change on existing processes Identify scope of change on enterprise maps by following process-Identify scope of change on enterprise maps by following process-

capability linkscapability links For changes driven by the organisational context:For changes driven by the organisational context:

Identify scope of change on enterprise mapIdentify scope of change on enterprise map Identify scope of change on enterprise processes using process-Identify scope of change on enterprise processes using process-

capability linkscapability links Perform impact and trade-off analysisPerform impact and trade-off analysis Implement changeImplement change Monitor changeMonitor change

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OutlineOutline

Two problems:Two problems: Process Lifecycle ManagementProcess Lifecycle Management

Change ManagementChange Management Process Portfolio ManagementProcess Portfolio Management

Three (closely related) solutions:Three (closely related) solutions: The The Enterprise Process Governance (EPG) Enterprise Process Governance (EPG)

methodology methodology The The Process and Enterprise Model Relationship Process and Enterprise Model Relationship

(PEMR) (PEMR) methodologymethodology The The Enterprise Process Lifecycle Manager Enterprise Process Lifecycle Manager

(EPLM) (EPLM) tooltool

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Enterprise ModellingEnterprise Modelling

Aim: Capture knowledge critical to the Aim: Capture knowledge critical to the management and operation of enterprises.management and operation of enterprises.

3 Views: Teleological, Social, Technical.3 Views: Teleological, Social, Technical. Informal Methods: (Graphical)Informal Methods: (Graphical) Formal Methods: (Formal Semantics)Formal Methods: (Formal Semantics)

Provide the ability to “prove formally that Provide the ability to “prove formally that responsibilities assigned to roles are responsibilities assigned to roles are maintained as a result of [business] process maintained as a result of [business] process execution.”execution.”

Meta-Objects: Goals, Roles, Actors, Processes, Meta-Objects: Goals, Roles, Actors, Processes, Resources. Resources.

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i* - i* - Organisational Organisational ModellingModelling

Developed: 1995 UoT – Eric Yu.Developed: 1995 UoT – Eric Yu. Purpose: Process Reengineering.Purpose: Process Reengineering. Classification: Classification:

Strategic / Social / Intentional.Strategic / Social / Intentional. Concepts: Concepts:

Actors: Agents, Roles, Positions.Actors: Agents, Roles, Positions.Resources, Tasks, [Soft]Goals.Resources, Tasks, [Soft]Goals.Abilities and Dependencies.Abilities and Dependencies.

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i* - i* - Organisational Organisational ModellingModelling

Strategic Dependency (SD) Model, consists of a set of Strategic Dependency (SD) Model, consists of a set of nodes and links. Each node represents an nodes and links. Each node represents an ‘actor’‘actor’, and each , and each link between the two actors indicates that a link between the two actors indicates that a ‘depender’‘depender’ actor depends on a actor depends on a ‘dependee’‘dependee’ for a for a ‘dependum’‘dependum’..

Strategic Rationale (SR) Models, provides a more detailed Strategic Rationale (SR) Models, provides a more detailed level of modeling by looking “inside” actors to model level of modeling by looking “inside” actors to model internal intentions / capabilities. internal intentions / capabilities.

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BPMN BPMN

Business Process Modelling Notation. Business Process Modelling Notation. (BPMI)(BPMI)

Constructs: Events, Activities, Gates, Constructs: Events, Activities, Gates, Lanes.Lanes.

Business Process Types (interoperability):Business Process Types (interoperability): Private (internal): Only internal participants.Private (internal): Only internal participants. Abstract (public): External with implicit Abstract (public): External with implicit

processes.processes. Collaboration (global): External with explicit Collaboration (global): External with explicit

processes.processes.

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BPMN ExampleBPMN Example

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The The Process and Enterprise Process and Enterprise Model Relationship (PEMR) Model Relationship (PEMR)

methodologymethodology Extends the EPG methodology by replacing Extends the EPG methodology by replacing

informal process documentation and enterprise informal process documentation and enterprise maps with explicit:maps with explicit: Enterprise models Enterprise models (in the (in the i*i* notation) notation) Process models Process models (in the BPMN notation)(in the BPMN notation)

Requires minimal semantic enhancements to Requires minimal semantic enhancements to process and enterprise modelsprocess and enterprise models

Uses Uses normative realization links normative realization links instead of instead of process-capability linksprocess-capability links

Defines detailed process of analysing these links Defines detailed process of analysing these links to determine varying degrees of opportunities for to determine varying degrees of opportunities for realization of enterprise capabilities via processesrealization of enterprise capabilities via processes

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PEMR: Combined PEMR: Combined FrameworkFramework

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Change ManagementChange Management

Given:Given: process and enterprise models process and enterprise models change request.change request.

We seek to identify…We seek to identify… Whether to implement the change;Whether to implement the change; Alternative means of implementing Alternative means of implementing

changechange Suggestions onSuggestions on minimally minimally modified modified

process / enterprise modelprocess / enterprise model..

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Semantic annotations Semantic annotations to enterprise modelsto enterprise models

FormalTROPOS framework permits FormalTROPOS framework permits annotation of dependencies in an i* annotation of dependencies in an i* model (except softgoal dependencies) model (except softgoal dependencies) with:with: Creation conditionsCreation conditions Invariant conditionsInvariant conditions Fulfillment conditionsFulfillment conditions

We use fulfillment conditions to obtain a We use fulfillment conditions to obtain a semantic description of what tasks in an semantic description of what tasks in an i* SD model seek to achievei* SD model seek to achieve

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A parsimonious A parsimonious extension to BPMNextension to BPMN

We extend BPMN with We extend BPMN with effect annotationseffect annotations Effects: Effects: ResultResult or or Outcome Outcome of activity.of activity. Effect Annotation: Specific Effect Annotation: Specific StatementStatement (or (or

assertion) relating to the result of an assertion) relating to the result of an activity, associated to a state altering activity, associated to a state altering construct on a process model.construct on a process model.

We expect an analyst to annotate BPMN We expect an analyst to annotate BPMN tasks or sub-processes with their tasks or sub-processes with their immediate effectsimmediate effects

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Effect annotationsEffect annotations

Effect annotations can be:Effect annotations can be: Informal (e.g. plain English)Informal (e.g. plain English) Formal (e.g., FOL, LTL, CTL etc.)Formal (e.g., FOL, LTL, CTL etc.) Controlled Natural Language: This Controlled Natural Language: This

involves specifying effects using a involves specifying effects using a limited repertoire of strictly formatted limited repertoire of strictly formatted natural language sentence patterns, natural language sentence patterns, which can be directly mapped to which can be directly mapped to underlying formal assertionsunderlying formal assertions

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Cumulative effect Cumulative effect annotationsannotations

Effect annotations are accumulated (after the Effect annotations are accumulated (after the initial pass through the process model to provide initial pass through the process model to provide the the immediate immediate effect annotations)effect annotations)

A A cumulative effect annotation cumulative effect annotation of a task or sub-of a task or sub-process is a statement of accumulated effects of process is a statement of accumulated effects of the entire process up to that pointthe entire process up to that point

In the accumulation process, the effects of more In the accumulation process, the effects of more recent tasks may over-ride (undo) the effects of recent tasks may over-ride (undo) the effects of prior tasksprior tasks

Accumulation may automated for formal Accumulation may automated for formal annotation, but is manual for informal annotationannotation, but is manual for informal annotation

Cumulative effects specifications may be non-Cumulative effects specifications may be non-unique…unique…

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Effect scenariosEffect scenarios

Splits and joins in a process model Splits and joins in a process model lead to alternative sets of cumulative lead to alternative sets of cumulative effects – these are referred to as effects – these are referred to as effect scenarioseffect scenarios

We maintain effect scenarios through We maintain effect scenarios through a process model…a process model…

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Linking process Linking process and enterprise and enterprise

modelsmodels A A process process realizes a realizes a task task in an i* modelin an i* model We initially identify We initially identify normative realization normative realization

links links between processes and tasksbetween processes and tasks These links are then analyzed and labeled These links are then analyzed and labeled

as either:as either: Weakly inconsistentWeakly inconsistent Strongly inconsistentStrongly inconsistent Consistent but unrealizedConsistent but unrealized Weakly RealizedWeakly Realized Strongly RealizedStrongly Realized

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Normative linksNormative links A A weakly inconsistent weakly inconsistent link relates a task in an i* model link relates a task in an i* model

to a process with at least one final effect scenario that to a process with at least one final effect scenario that is inconsistent with the task fulfillment conditionis inconsistent with the task fulfillment condition

A A strongly inconsistent strongly inconsistent link relates a task in an i* model link relates a task in an i* model to a process for which all final effect scenarios are to a process for which all final effect scenarios are inconsistent with the task fulfillment conditioninconsistent with the task fulfillment condition

A A consistent but unrealized consistent but unrealized link relates a task in an i* link relates a task in an i* model to a process for which all final effect scenarios model to a process for which all final effect scenarios are consistent with the task fulfillment condition (but are consistent with the task fulfillment condition (but the realization condition, below, is not met)the realization condition, below, is not met)

A (weakly/strongly) A (weakly/strongly) realizedrealized link relates a task in an i* link relates a task in an i* model to a process for which at least one/all final effect model to a process for which at least one/all final effect scenarios entail the task fulfillment conditionscenarios entail the task fulfillment condition

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Tool DemoTool Demo

We will now see a tool demoWe will now see a tool demo The following screenshots have been provided in The following screenshots have been provided in

lieu of the actual demo for those who did not lieu of the actual demo for those who did not attend this presention.attend this presention.

Constrained Development Methodology Constrained Development Methodology Tool DemoTool Demo

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Annotating Effects of Tasks in BPMN Annotating Effects of Tasks in BPMN ModelModel

Annotated Effects

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Accumulation of EffectsAccumulation of Effects Over Over TrajectoriesTrajectories

Accumulated Effects

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Accumulation of EffectsAccumulation of Effects Over Trajectories Over Trajectories Unload Containers Task has Two Effect Scenarios as this task can be accomplished over two alternatives Unload Containers Task has Two Effect Scenarios as this task can be accomplished over two alternatives

trajectories.trajectories.

Effect Scenarios

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Accumulation of EffectsAccumulation of Effects Over Over TrajectoriesTrajectories

Demonstration of an alternative trajectoryDemonstration of an alternative trajectory

Accumulated effects

over one trajectory

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Annotating Fulfillment Conditions to Annotating Fulfillment Conditions to Tasks/Goals/Dependencies of Tasks/Goals/Dependencies of i*i* Model Model

Annotating fulfillment

condition of task

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Creating Realization Links Between Creating Realization Links Between ModelsModels

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Sample Report of Consistency Sample Report of Consistency EvaluationEvaluation