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©2011 BPTrends Associates. All Rights Reserved
Building and Aligning a Business Process Architecture
Roger T. Burlton, Director Of Consulting ServicesBPTrends Associates rburlton@bptrendsassociates.comTwitter: @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
info@bptrendsassociates.com
+1 617 964 4753
Copyright © 2011 BPTrends Associates. All Rights Reserved.3
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.4
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
©2011 BPTrends Associates. All Rights Reserved
Section 1Some Process Principles
Copyright © 2011 BPTrends Associates. All Rights Reserved.6
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.11
The BPTrends Associates Pyramid
Harmon Pyramid
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The BPTrends Associates BPM Methodology
12
©2011 BPTrends Associates. All Rights Reserved
Section 2Strategy and Stakeholder Models
Copyright © 2011 BPTrends Associates. All Rights Reserved.14
Architecture Development Activities
Copyright © 2011 BPTrends Associates. All Rights Reserved.
A Basic Strategic Vocabulary: The Business Motivation Model *
* www.businessrulesgroup.org
Applicable to:
• Organizational Unit
• Business Process
15
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.17
Define Organization Context and Stakeholders
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.19
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
• 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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.24
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.
©2011 BPTrends Associates. All Rights Reserved
Section 3Process Architecture Maps
Copyright © 2011 BPTrends Associates. All Rights Reserved.26
Architecture Development Activities
Copyright © 2011 BPTrends Associates. All Rights Reserved.27
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
27
Copyright © 2011 BPTrends Associates. All Rights Reserved.
Value Chains Contain Value Streams
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Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
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Copyright © 2011 BPTrends Associates. All Rights Reserved.30
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)
Copyright © 2011 BPTrends Associates. All Rights Reserved.
The Value Chain Group’s Value Reference Model
We will ignore their Management processes and just focus on their core processes for now.
31
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Level 2 Process Relationships and Measures Are Defined by VRM
32
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.35
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.36
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.37
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.38
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.39
Consolidate the Architecture: IT Department Example
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
40
©2011 BPTrends Associates. All Rights Reserved
Section 4Process Scorecards
Copyright © 2011 BPTrends Associates. All Rights Reserved.42
Architecture Development Activities
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
43
Copyright © 2011 BPTrends Associates. All Rights Reserved.
Functional vs. Process Measures
44
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
45
©2011 BPTrends Associates. All Rights Reserved
Section 5Process Governance Frameworks
Copyright © 2011 BPTrends Associates. All Rights Reserved.47
Architecture Development Activities
Copyright © 2011 BPTrends Associates. All Rights Reserved.48
Determine Who Will Govern Each Value Chain, Value Stream and Process
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
49
©2011 BPTrends Associates. All Rights Reserved
Section 6Process/ Capability Alignment
Copyright © 2011 BPTrends Associates. All Rights Reserved.51
Architecture Development Activities
Copyright © 2011 BPTrends Associates. All Rights Reserved.52
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
From Internal Process in Architecture or External Stakeholder
From Internal Process in Architecture or External Stakeholder
To Internal Process
in Architecture
or
External Stakeholder
From Internal Processin Architecture
or
External Stakeholder
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
From Internal Processin Architecture
or
External Stakeholder
From Internal Process in Architecture or External Stakeholder
From Internal Process in Architecture or External Stakeholder
To Internal Process
in Architecture
or
External Stakeholder
Inputs
Outputs
Guides
Enablers
Do Something
Inputs are processed into Outputs according to Guides using Enablers when Events occur
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
Copyright © 2011 BPTrends Associates. All Rights Reserved. 55
From Internal Process in Architecture or External Stakeholder
To Internal Process
in Architecture
or
External Stakeholder
From Internal Processin Architecture
or
External Stakeholder
Inputs
Outputs
Guides
Enablers
Do Something
Inputs are processed into Outputs according to Guides using Enablers when Events occur
Knowledge, Policies and Rules Alignment: Types of Guides
Internal policies
Business rules
External Legislation, Regulations & Interpretations
Standards
PrinciplesStrategiesProcedures Experience
Best practices
From Internal Process in Architecture or External Stakeholder
Copyright © 2011 BPTrends Associates. All Rights Reserved. 56
From Internal Processin Architecture
or
External Stakeholder
From Internal Process in Architecture or External Stakeholder
From Internal Process in Architecture or External Stakeholder
To Internal Process
in Architecture
or
External Stakeholder
Inputs
Outputs
Guides
Enablers
Do Something
Inputs are processed into Outputs according to Guides using Enablers when Events occur
Process Capabilities Alignment: Look at Architecture Enablers
Capabilities employed to run process, access information, knowledge and
rulesIT HR Facilities
©2011 BPTrends Associates. All Rights Reserved
Section 7Leveraging the Architecture into Process Analysis & Design
Copyright © 2011 BPTrends Associates. All Rights Reserved.
The BPTrends Associates BPM Methodology
58
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
59
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
60
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Provide Customer Services
61
Copyright © 2011 BPTrends Associates. All Rights Reserved.
Process Interface Health Check
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
Provide Customer ServicesSource of major
performance problems
Source of minor performance problems
No significant issues
62
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Business Process Project Change Scope Diagram
VS010 v1.163
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
64
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
65
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
66
Copyright © 2011 BPTrends Associates. All Rights Reserved.
Inputs
Guides
Enablers
Outputs
Prepare FoodSupplies
Order Ready for Packaging
Food Ready Notification
Restaurant StaffCook
Order Details Priority Order Status
Order Details Received
Recipes
Health and Safety Policies
Food Ready Notification
AssignHuman
Resources
Purchase Supplies
Plan Restaurant Operations
Acquire and Maintain
Equipment
Kitchen Facilities
Provide Customer Services
Take Order
Schedule Delivery
Deliver Order
An IGOE at the Next Level
67
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Request for Delivery Order
Customer Info
Delivery Status Request
Order Phone Rings
Customer History
Credit Poilcy
Delivery Menu
Delivery Territory and
Routes
Order System
Restaurant Staff
Credit Card System
Telecom System
Restaurant Staff
Delivery Territory and
Routes
Delivery Route
Order Satus
Rejected Request
Customer & Order Info
Order Details
Payment Method
Supplies
Cook Kitchen Facilities
Priority Order Status
Health & Safety Policies
Recipes
Order Ready for Packaging
Delivery Vehicles
Food Ready Notification
Transportation Ready
Health & Safety Policies
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
69
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Copyright © 2011 BPTrends Associates. All Rights Reserved.
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
Request for Delivery Order
Customer Info
Delivery Status Request
Order Phone Rings
Customer History
Credit Poilcy
Delivery Menu
Delivery Territory and
Routes
Order System
Restaurant Staff
Credit Card System
Telecom System
Restaurant Staff
Delivery Territory and
Routes
Delivery Route
Order Satus
Rejected Request
Customer & Order Info
Order Details
Payment Method
Supplies
Cook Kitchen Facilities
Priority Order Status
Health & Safety Policies
Recipes
Order Ready for Packaging
Delivery Vehicles
Food Ready Notification
Transportation Ready
Health & Safety Policies
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
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Section 8Conclusion
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How Mature is Your Organization?
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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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