AN INTRODUCTION TO BUSINESS PROCESSMAPPING AND VISIO

CACUBO Workshop, March 23, 2018

Amy Albrinck Schroeder, Assistant Comptroller, Marquette University

LEARNING OBJECTIVES1. Introduce common process map styles/techniques2. Create a multi-purpose process map that is easy to follow3. Key components of a process map for review by finance

leaders and auditors (Marquettes story)4. Efficient use of Microsoft Visio software

WHY DOCUMENT A PROCESS?

WHY DOCUMENT A PROCESS?Identify opportunities for improvement Automation Standardization Accuracy Internal controls Conserve resources Eliminate waste

Communication Training Documentation Defining new process How it REALLY works

Other?

PROCESS MAP OPTIONS (a few)Value Stream Mapping

Direct observation (usually) Detailed; tracks a specific product/output thru a process Value is defined from customers perspective Highlights waste in process cycle time, wait time, inventory, buffers Useful for:

Beginning of projects to provide shared view of as is process Demonstrating where/how improvements will benefit the process Implementing LEAN processing

PROCESS MAP OPTIONS (a few)LEAN

Focus on more value, less waste; standardization 8 Wastes defined as DOWN TIME

Defects Over Production Waiting Not engaging everyone Transportation Inventory (storage) Motion Extra processing

PROCESS MAP OPTIONS (a few)SIPOC

Supplier Input Process Output - Customer Flexible high level or more detailed view Trace input/output thru process steps

https://www.youtube.com/watch?v=_2_Ijfg4EVk

https://www.youtube.com/watch?v=_2_Ijfg4EVk

GROUP ACTIVITY: SIPOCProcess: Cupcakes for a school carnival *or* Salad for pot-luck dinner1. Define the process what are your bookends?2. What are the top level process steps (tasks)? 4-8; no decisions; no loops3. What are the key outputs of each step? 3-4 primary4. Who receives the outputs? Is it an input to the next step?5. List the inputs for each task.6. Determine who supplies each input.7. Confirm with stakeholders. (Share with your group.)8. Document where uncertain, need clarification, or ideas to improve

PROCESS MAP OPTIONS (a few)Swim Lane (Makigami)

Can be developed from a SIPOC Clearly documents sequential tasks, responsible parties, deliverables,

improvement opportunities, decision points, rework loops. Capture cycle times, delays, lead time and redundancies.

Questions so far?

IN THE BEGINNING Annually, updated process memos for external audit.

External auditors prepared process maps

Consultants drafted maps during R12 FitGap

MU FINANCE OBJECTIVES Document current processes for analysis Document proposed future processes for approval & use in training Understand the risks within each process Ensure the adequacy of internal controls Identify opportunities to improve:

Efficiency (simplify) Effectiveness (accuracy, controls) Reporting (KPIs, data, etc.)

Level of Detail Mega Process (approx. 10)

o PTP, HTR, RTRo VP to Director level (e.g., Mission Statement)

Process (approx. 50)o Purchasing, Vendor Set Up, AP, Paymentso Director to Assoc. Director level (Aging of AP)

Sub-Process (approx. 200)o Checks, Treasury Wires, Quick Payso Assoc. Director to Staff (Flowchart)

Micro Process (Activity Level) (1,000s)o Check printing, Formatting, Positive pay fileo Staff (Work Instructions, Training Materials)

Mega

Process

Sub-Process

Micro Process

Marquette University Mega Processes ATI Awareness to Inquiry - Marketing programs designed for target customers RTR Record to Report - All financial infrastructure, GL entries, reconciliations and reports HTR Hire to Retire - Recruiting new hires, on-boarding, benefits, payroll and termination PTP Purchase to Pay - Purchasing, supplier bidding & selection, payment processing ATT Admission thru Tuition - Enroll students, bill tuition and services, receivable-to-payment SRM Student Relationship Management - Student services and legal compliance programs DTA Donate to Allocate - Soliciting and receiving gifts, determining how to spend/allocate ATR Acquire to Retire - Procuring fixed assets, configuring depreciation, preventive

maintenance and disposals GAC Grant Awards & Compliance - Proposal requests, awards, allocation, compliance & rptg ESS Enterprise Systems & Services - IT infrastructure and support services

* Note - this is a process centric approach to governance. Alternate approaches can be departmental or structural.

Document StandardDefined by Offices of Finance, Internal Audit, EBS Upgrade Project Team

1.SimplifyUse color sparinglyOnly one output per shape

2.CondenseTarget 1 page on 11 x 17Consolidate dataFlow left to right / top to bottom

3.StandardizeShape sizesFonts / Titles / DescriptionsTextbook Quality

4.OrganizePreparer / ReviewersProcess NumberVersion ControlSharePoint to maintain

5. DeliverablesProcess sequenceRoles & responsibilitiesFinancial & operational controls (yellow)Improvement opportunities

Document Standard

Document Standard

Key Components for Finance & Audit Internal Controls:

o Prevent or detect errors or irregularities (risks)o Preventive: Passwords, Segregation of Duties, keycard access, etc.o Detective: Reconciliations, mgmt reviews, exception reports, etc.o Compensating: When ideal controls dont exist for reasons such as limited

resources. Usually detective, back end controls. Risks what can go wrong in a process?

Validity Completeness Recording Propriety Safeguarding of Assets Timeliness Subsequent Accountability (i.e., Monitoring)

Design internal controls to mitigate those risks

Key Components for Finance & AuditVarious Controls1. Authorization Procedures individuals with proper training & experience2. Segregation of Duties physical separation of critical functions

(execution, custody, recording & reconciliation)3. Documentation data integrity & audit trails to strengthen report reliability4. Access Controls physical access to valuable, confidential, or sensitive

assets is restricted5. Independent Internal Verification Internal performance standards are

verified and monitored

SoD & SASegregation of Duties

To ensure that no one person within the organization can both perpetrate & conceal errors and/or irregularities in the normal course of business.

Sensitive AccessTo ensure critical, confidential and/or powerful access is restricted to authorized and competent personnel.

Company-wide key controls supporting:Financial Statement Integrity

e.g. General Ledger posting vs. cash receiptsOperational / Transactional Credibility

e.g. vendor set up vs. vendor paymentData & Metric Reliability

e.g. Protection of Confidential Information

social security numbers, payroll, student information, etc.

GROUP ACTIVITY: SWIM LANEProcess: Going to grocery *or* Your Choice (business process)1. Define the process what are your bookends?2. Identify the departments/functions involved a lane for each

(green or purple post-its).3. Identify all steps in the process and lay them out in time sequence.

a. Pink = for manual stepsb. Light blue = for automated stepsc. Yellow = decisions (turn as a diamond)

4. Identify issues or improvement opportunities (small pink post-its)5. Identify internal controls (financial, operational)

Process Review - Tips What is the goal? Know suppliers (inputs) & customers (outputs)

o Understand their needso Their needs = your expectations

Metrics & measurement (volume; materiality) Keep it simple (more complexity=more errors) Technology always supports the business

o Process should work first, technology enhances ito Then staff the positions with people

Process Review - People People are not computers Clearly state the goals of process

review/mappingo Be inclusive (should feel like part of the improvement

process).o If results could be reductions in overtime ($$$) or staff

or changes to position, be honest and empathetic. Read them

o Eager or Nervous, Trusting or Defensiveo Distracted by other priorities?

Be comfortable with ambiguityo Ask painfully obvious questions.o You may not be the expert!

Process Review - People Suggested Questions

o What could go wrong? How could we fail?o What activities are the most complex?o How could someone disrupt our operations?o What keeps you up at night?o Is there anything I wasnt smart enough to ask?

Flowcharting Practice Flowcharting Etiquette

o Use swim lanes to identify Departments involvedo Left to Right, Top to Bottomo Name & number flowcharts & reference where they connect to other flowso Document the preparer and the source of the information for reference

Identify the inherent risks, potential errors or irregularities from one process step to another

Determine whether controls exist to ensure:o Process steps are COMPLETEo Transactions are VALIDo Steps are RECORDED PROPERLYo Assets involved are adequately SAFEGUARDEDo Procedures are performed in a TIMELY mannero MONITORING controls are in place

Visio examples

Resources

Microsoft Office Visio Training / Help

https://support.office.com/en-us/article/visio-video-training-e058bcfa-1d90-4653-afc6-e84d54cf94a6?wt.mc_id=otc_home&ui=en-US&rs=en-US&ad=US

Marquette University

Office of Finance

Business Process Mapping

Start/End

Y

N

Y

N

A

1

To Process Title ABC (1 of 2)

FromProcess Title ABC (1 of 1)

Document

All maps should have a clear start and end

point.

Process Step

When a procedure involves a system or

outside party.

Manual Process Step

When a procedure is strictly manual.

Document or report

When a process step involves a document or

report as part of the procedure, it can be

illustrated like this.

Decision / Alternatives: this shape can be

used to illustrate paths a, b, c, or 1, 2, 3, and

the different processes that result.

Decision: Yes/No

Control Point:this shape allows the reader to

ask whether the control objective was met. If

not, then the no path will delineate the

corrective actions to be taken. This shape

generally appears after a key control.

On Page Connector: Alpha sequential

Off Page Connector: Numeric sequential for

each process map, and identifies the to or

from map title and number.

Database: used when master data is entered

or manipulated, and should identify access

controls if data is sensitive.

Process Description: placed on the top left of

process step to elaborate further.

Financial Control: placed on the top right of

process step to point out any key control

supporting finl reporting integrity.

Operational Control: placed on the top right

to identify any key opl controls.

Improvement Opportunity: top right to

capture opl or control improvement

opportunities.

Process Mapping Symbols

Process Mapping

Standards

1.

Font: Arial 8 pt. Page Size: 11x17

Title

(Arial 18 pt), information box (Arial 8 pt),

process number box (Arial 18 pt).

2.

Every process will have a unique process

number that will be housed

in the Process

Library, and

will be

documented on the top

right of the map.

3.

S

hape s

ize

s may

be changed

on a limited

basis, but generally should stay the same to

prevent unintended perception of emphasis or

understatement.

4.

If more than 3 control

s

i

n a single process

step

,

determine if the

process

step

should be

broken in

to m

ore

process steps.

5.

There should be a control after every 3 to 6

process steps.

6.

Use swim lanes to identify each Department

involved in the process.

7.

Process flow

s

should be

Left to Right, Top

to Bottom

.

The final pro

duct should be

professional and textbook quality.

8.

Every shape should only have

one output

arrow but parallel

processes will be identified

by an addl dotted line output.

9.

Name & number flowcharts and reference

where they connect to other flows

10.

Must den

ote the following in top information

box:

-

Prepared with

refers to the Subject Matter

Expert (SME) or other source

of

process

data

.

-

Controls Reviewed by

refers to the

controls expert, Comptrollers Dept or

Internal Audit

team.

This

member is

responsible fo

r

assessing the adequacy of

the controls designed to mitigate the risks

inherent within the process

.

(

testing of the

controls for effectiveness is Internal

Audits responsibility

)

-

Process Reviewed by

refers to the

process owner

, who is

responsible for

com

pleteness/accuracy of

process flow

.

11.

Version Control: Save docum

ent file

as

ABC

Process Name

.vsd

EMBED Word.Document.8 \s

Dec. 2011

Process Mapping

Standards

1.

Font: Arial 8 pt. Page Size: 11x17

Title

(Arial 18 pt), information box (Arial 8 pt),

process number box (Arial 18 pt).

2.

Every process will have a unique process

number that will be housed

in the Process

Library, and

will be

documented on the top

right of the map.

3.

S

hape s

ize

s may

be changed

on a limited

basis, but generally should stay the same to

prevent unintended perception of emphasis or

understatement.

4.

If more than 3 control

s

i

n a single process

step

,

determine if the

process

step

should be

broken in

to m

ore

process steps.

5.

There should be a control after every 3 to 6

process steps.

6.

Use swim lanes to identify each Department

involved in the process.

7.

Process flow

s

should be

Left to Right, Top

to Bottom

.

The final pro

duct should be

professional and textbook quality.

8.

Every shape should only have

one output

arrow but parallel

processes will be identified

by an addl dotted line output.

9.

Name & number flowcharts and reference

where they connect to other flows

10.

Must den

ote the following in top information

box:

-

Prepared with

refers to the Subject Matter

Expert (SME) or other source

of

process

data

.

-

Controls Reviewed by

refers to the

controls expert, Comptrollers Dept or

Internal Audit

team.

This

member is

responsible fo

r

assessing the adequacy of

the controls designed to mitigate the risks

inherent within the process

.

(

testing of the

controls for effectiveness is Internal

Audits responsibility

)

-

Process Reviewed by

refers to the

process owner

, who is

responsible for

com

pleteness/accuracy of

process flow

.

11.

Version Control: Save docum

ent file

as

ABC

Process Name

.vsd

_1390376059.vsd

Start

Y

N

Y

N

A

1

To Process Title ABC (1 of 2)From Process Title ABC (1 of 1)

Document

Start/End

All maps should have a clear start and end point.

Process StepWhen a procedure involves a system or outside party.

Manual Process StepWhen a procedure is strictly manual.

Document or report

When a process step involves a document or report as part of the procedure, it can be illustrated like this.

Decision / Alternatives: this shape can be used to illustrate paths a, b, c, or 1, 2, 3, and the different processes that result.

Decision: Yes/No

Control Point: this shape allows the reader to ask whether the control objective was met. If not, then the no path will delineate the corrective actions to be taken. This shape generally appears after a key control.

On Page Connector: Alpha sequential

Off Page Connector: Numeric sequential for each process map, and identifies the to or from map title and number.

Database: used when master data is entered or manipulated, and should identify access controls if data is sensitive.

Process Description: placed on the top left of process step to elaborate further.

Financial Control: placed on the top right of process step to point out any key control supporting finl reporting integrity.

Operational Control: placed on the top right to identify any key opl controls.

Improvement Opportunity: top right to capture opl or control improvement opportunities.

_1493122102.doc

Process Mapping Standards

1. Font: Arial 8 pt. Page Size: 11x17 Title (Arial 18 pt), information box (Arial 8 pt), process number box (Arial 18 pt).

2. Every process will have a unique process number that will be housed in the Process Library, and will be documented on the top right of the map.

3. Shape sizes may be changed on a limited basis, but generally should stay the same to prevent unintended perception of emphasis or understatement.

4. If more than 3 controls in a single process step, determine if the process step should be broken into more process steps.

5. There should be a control after every 3 to 6 process steps.

6. Use swim lanes to identify each Department involved in the process.

7. Process flows should be Left to Right, Top to Bottom. The final product should be professional and textbook quality.

8. Every shape should only have one output arrow but parallel processes will be identified by an addl dotted line output.

9. Name & number flowcharts and reference where they connect to other flows

10. Must denote the following in top information box:

Prepared with refers to the Subject Matter Expert (SME) or other source of process data.

Controls Reviewed by refers to the controls expert, Comptrollers Dept or Internal Audit team. This member is responsible for assessing the adequacy of the controls designed to mitigate the risks inherent within the process. (testing of the controls for effectiveness is Internal Audits responsibility)

Process Reviewed by refers to the process owner, who is responsible for completeness/accuracy of process flow.

11. Version Control: Save document file as

ABC Process Name.vsd

MAP

Your University

Tests of Controls

As of Month DD, YYYY

** TEMPLATE / sample **

#Process NameProcess MapControl #Fin / OperOwnerControl DescriptionSystem / Manual

Schroeder, Amy Albrinck: Schroeder, Amy Albrinck:

System controls may be either fully automated or require a user to log in and take action within the system.

Manual controls are performed outside of the system but may utilize system reports.Audit Testing ProceduresSample SizeAudit Testing FrequencyLast TestedResultsAction Plan

1PO - PO ProcessPTP.010 1FJackie SmithThe Oracle Purchasing system (MFS) verifies that the responsibility center (RC) and restriction combination has sufficient budget for purchase and the account coding is valid (RC, restriction and natural account). S

2PO - PO ProcessPTP.010 2OJohn JonesThe Purchasing Department performs a daily review of the PO Transmission Report which lists all of the POs processed for the day to ensure completeness and timeliness of PO processing.M

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Questions?amy.schroeder@marquette.edu

mailto:amy.schroeder@marquette.edu

An Introduction to Business Process Mapping and VisioLearning ObjectivesWhy Document a Process?Why Document a Process?Process Map Options (a few)Process Map Options (a few)Process Map Options (a few)Slide Number 8Group Activity: SIPOCProcess Map Options (a few)Questions so far?In the BeginningMU Finance ObjectivesLevel of DetailMarquette University Mega Processes Document StandardDocument StandardDocument StandardKey Components for Finance & AuditKey Components for Finance & AuditSoD & SAGroup Activity: Swim laneProcess Review - TipsProcess Review - PeopleProcess Review - PeopleFlowcharting PracticeVisio examplesResourcesQuestions?