Business Process Management Framework and Approach

January 2014George B. Lampere, Ph.D.

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What is Business Process?A business process is a set of related activities with a defined input and output that

provides value to its customers.

What is the value of Business Process Management (BPM)?BPM not only improves profitability, but it actually helps create competitive advantage

for companies. How? By using BPM, an organization can standardize processes and

measure key activities for continuous improvement.

What is the industry standard for business process management?The Business Process Management Institute first developed the standards for the

Business Process Model Notation (BPMN) in the 1990’s. Merging with the association

of Business Process Management Professionals (ABPMP) they define the certification

standards for the Certified Business Process Management Professional (CBMP).

Building a Common Understanding of Business Process Management

Key stakeholders and project team members need a common understanding of business process management along with the governing standards that will be used.

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How will Business Process Management fit with the project?Structured Expert Method for Business Analysis (SEMBA) is a methodology consisting of a

clear framework grounded in proven architectural approaches, enriched with business

process management principles and addressing the effective use of subject matter

expertise.

What value does SEMBA Provide to the Cloverleaf project?SEMBA provides the link between business process modeling, business analysis, software

application implementation, and data management.

The Business Process Management track of work should be part of the ePMO to identify opportunities within the project as well as identifying potential opportunities and conflicts with other large-scale change initiatives.

Creating the Business Process Management Framework for the Cloverleaf project

Finance

Marketing/ Sales

Customer Service Requirements/

Business Analysis

BusinessProcess

OrganizationalChange Mgt.

Infrastructure

BIA

SolutionArchitectureApp

DevDeployment

TestingTest Analysts

Test Data

Environments

App SMEsTables

App SMEsTables

Domain /App Archs

App SMEsVendors

Engi

neer

sDa

ta C

ente

rs

Change Agents

FinanceLead

MarketingLead

Customer SvcLead

SME’s

BPM Lead

LeadCompliance

WEB/Sys Integration

ISPM Technical Project Mgt

BusinessProcess Owner

Business Project Mgt

Structuring Business Process Management into the InitiativeEach Level 2 process has dedicated resources that is centered around the process owner.

Lead

Each wheel identifies the following:• Work stream lead name

• The name of the process

• High-level description of the process

• List of key activities / functions

• List of technical applications

• List of application modules

• Listing of interfaces

To ensure success, the project team is organized around core processes to share knowledge and to efficiently manage the project in focused teams.

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Business Context

Business Process

Information / Knowledge

Application Landscape

Organizational Structure / Job Design

Chan

ge V

ision

and

Sco

pe

As-Is

Und

erst

andi

ng

To-B

e De

sign

Requirements Engineering

Mig

ratio

n De

sign

Analysis and Design Phase

Using its full capabilities, This framework delivers a solid design of the new (To- Be) situation covering the business context, the business processes and the possible consequences to the information and IT systems.

Structured Expert Method Business Analysis (SEMBA)The framework that integrates Business Process Management with the project

SEMBA is a product of Capgemini Consulting

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Structured Expert Method Business Analysis Linkages

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Level 1:Strategic – Identifies the value chain in the organization

Level 2: Tactical Level – Identifies the high-level process

Level 3: Operational Level – Identifies the process activities and tasks.

Level 4: Functional Level – Identifies the work steps and procedures

Each level within the process pyramid provides greater granular detail and emphasizes the constitution of links between activities and the transformation that takes place within the process.

Using BPMN Industry Standards the process levels provide alignment and integration with other tracks of work within the project

Business Process Levels Provide Structure

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Value Chain

Process Groups

Process Level

Sub-Process Level

Activity Level

Task Level

Work Steps / Procedures

KPI’s / SLA

A value chain is a chain of primary activities that a business performs in order to deliver a valuable product or service for the market.

A process group contains one or more similar process that are unique to themselves.

Process / Sub-processes contain a set of related activities that provide value to the customer.

An Activity is a major unit of work to be completed in achieving the objectives of a process. It has a precedence relationship with other activities. A Task is a single work event.

Work Steps / Procedures are components of a task.

KPI’s – Key Performance Indicators define QualitySLA’s – Service Level Agreements define time

1

2

3

4

Business Process Levels Provide Drill Down and Roll Up Capabilities and Show Relationships to other Processes

The ability to be innovative and quickly adapt to change can be easily managed by understanding the relationships and monitoring the operational performance.

System components supporting each process stepTechnical Support Logical interfaces, configuring / functional parameters , SLAsFunctional Parameters

Detailed BRQse.g. specific threshold for interest rate calculation

Business rules

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2

34

1

BUSINESS TECHNOLOGY

Productse.g. Financing options

Servicese.g. Lease agreements, De

Policiese.g. no cards to under-ages

High level Business Requirementse.g. Accommodate as-is interest rate calculations

SLA’s KPI’s

Competencies

Architecture principlese.g. SOA

Taxonomy and Folksonomy of contentBusiness Continuity / Disaster Recovery Planning

Specific technologies to use (or not use)e.g. WebSphere

InfrastructureTechnical Compliance

Alignment of Business and Technical Requirements at Each Level of the Process.

Activities at each level need to be aligned and sequenced to ensure proper integration

Scripts or work steps

Performance Metrics

Org. StructureJob Design

DEFINE ANALYZE DESIGN Test IMPLEMENT

Program / Project management

Testing

System Development

Data / Information Management

Architecture

Requirements Management

Application Implementation

Business Context and Scope

Business Transformation and Change management

BusinessIssue Implemented

change

Using the Structured Expert Method Business Analysis (SEMBA) in the Project in the Cloverleaf Project framework

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Approach Target Customer

Customer Orders Product (COP)

Customer Consumes Service (CCS)

Customer Has Question (CHQ)

Bill Day Arrives (BDA)

Customer Pays (CP)

Customer Did Not Pay (CDNP)

Approach Target Customer

(ATC)Customer Orders Product (COP)

The Customer Experience Lifecycle

Level 1 Process – Strategic – Value Chain

This illustrated example shows the five stages in this organizations value chain and the relationship to the corresponding process groups.

Simple diagrams aid in describing the processes that will impact certain parts of the value chain.

Example

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Level 1 Process – Strategy - Value Chain shown with Process Groups

Example of a Credit Card Value Chain and Process Groups

Functions that are out of scope of the project and that will not change are shaded to assist key stakeholders and project team members understand the impact and relationships.

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Level 2 – Tactical - Processes Shows how high-level end-to-end work flows

Processes have their own specific SLA’s and KPI’s where metrics can be defined.

Sub-processes are linked together and defined by functions. High level decisions are identified.

Processes defined within the white outlined boxes indicate where the operation is performed.

Example

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Level 3 Process Maps Show Activities and Tasks within the Sub-Process.

Industry standard symbols are used to aid in understanding. Triggering events use different symbols to determine the path of the workflow. Colors are used to differentiate the type of event.

Activities and Tasks are displayed in swim lanes to separate roles, identify decisions, hand-offs, and systems used to support the process.

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Level 4 – Functional – Work Steps, Procedures, and Performance Standards

Not all tasks require or need documented procedures, work steps, or training aids. These are only necessary when standardization or a level of quality is needed.

The functional requirements for the business may include:

• Work Steps• Procedures• Check lists• Templates• Other Job Aids

Performance measures based upon defined metrics should be used as needed to assess the effectiveness of the process (not the individuals).

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Types of Deliverables Common in Business Process Management

Current State• Business Process Approach Plan• SEMBA Guideline Requirements Management Plan• As-Is Understanding• As-Is Process Definition and Narrative• As-Is Process Map• Current state Metrics, measures (KPI’s and SLA’s)• Risks and Assumptions

Analysis and Planning• Business Best Practices Assessment Report• Gap Analysis• Gap Closure Plan• SWOT Analysis• Future State Capability Requirements• Business Options Report• Value Realization Approach Plan• High-level Capability Release Plan

To-Be State• Business Capability Assessment• To-Be Process Definition and Narrative• To-Be Process Map• To-Be metrics and measures• Risks and Assumptions• Migration Strategy and Plan• Procedures and Work Steps

The BPM team relies upon input from other tracks of work, and provides outputs to other tracks of work.

Capability Maturity Model Integration (CMMI)

Capability Maturity Management: Our ability to effectively transition and manage change is based in part upon the current capability from the business processes.

Level 5: Focus on continually improving process performance through both incremental and innovative technological improvements.

• Focus: Enterprise innovation and continuous improvement• Quantitative process-improvement objectives for the organization

are established, continually revised to reflect changing business objectives, and used as criteria in managing process improvement.

Level 4: Sub-processes are selected that significantly contribute to overall process performance.

• Focus: Quantitative measures • These are controlled using statistical and other quantitative

techniques based on the needs of the customer, end users, organization, and process implementers.

Level 3: Processes are well characterized and understood, and are described in standards, procedures, tools, and methods.

• Focus: Standardization• Processes are typically described in more detail and more

rigorously than at maturity level 2.

Level 2: An organization has achieved specific and generic goals.

• Focus: Selective project management• The projects of the organization have ensured that requirements

are managed and that processes are planned, performed, measured, and controlled.

Level 1: Processes are usually ad hoc and chaotic. • Focus: Unstructured and informal• The organization usually does not provide a stable environment.

It is important to identify and understand the current capability level because it will limit the organization’s ability to implement and execute the desired change.

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Definitions of the levels and Scope ofBusiness Process Change

Business Process Improvement: Incremental changes to process levels at the task level. It is a systematic approach to closing of process or system performance gaps through streamlining and cycle time reduction, and identification and elimination of causes of poor quality, process variation, and non-value-adding activities. Metrics and measures are used to identify problem areas. This is generally considered an on-going event in mature organizations.

Business Process Alignment: Specific changes to the defined business process that incorporate the technical functionality that will enhance the business process. Automation of manual tasks; integration of systems to share information across applications; collaboration enhancements between work groups or employees; and reporting and analysis of information to make informed decisions are some of enhancements to the existing process.

Business Process Redesign: Major changes to operational level process or sub-process. This could also be limited to a single business unit, or functional area often driven by technology, merger, acquisition, or divestiture.

Business Process Reengineering: The radical reinventing of how business is performed. The reengineering generally occurs at the strategic level. This level of change generally occurs when the organization wants to take a new approach to business in ways that is unlike the rest of the industry.

Business Transformation: A major restructuring and realignment of business processes, people / organization, technology, and information / knowledge management to meet new business performance requirements.

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For additional information contact:

George B. Lampere, Ph.D.WWW.Glampere.com

Glampere@glampere.com 

References:

Business Process Management Institute

Business Process Management Professionals (ABPMP)

Certified Business Process Management Professional (CBMP)

Structured Expert Method Business Analysis

Capability Maturity Model Integration (CMMI)