Process Mapping

Description

• The depiction of processes in pictorial diagrams.
• Activities and their relationship and sequence
• The relationship of activities and functions
• Steps that compose activities
• What purpose each step provides
• The relationship and sequence of the steps e.g. inputs/outputs, etc.

When to Use

• Process mapping can be used at all three of the major tiers of process modeling: business-model processes, high-level process models and  “desk-top procedures” level.  It can be used for both "As-Is” Process Assessment and "To-Be" Process Model deliverables.

Approach

Process-modeling documentation is dependent on the purpose of the model and the subsequent tool that is chosen to document the processes.  As defined below, there are many choices depending on needs. These range from simple models for presentation and communication purposes to complex models for developing applications in the future. When developing the activities in the process models, use tools directly related to process development. When the processes have been sufficiently developed, transfer them to the process models described here.

These models are based on levels of detail.  Block diagrams are often used at the first “high level” or process level.  The second level of decomposition is the “activity” level, which is represented by process flowcharts, and, finally, the third level is the “step” level represented by the activity models.  Only areas that will yield benefits if analysed and designed should be decomposed into the more detailed levels.

• Identify the process to be mapped
• Create a process diagram for the selected processes
• Use block diagrams to identify the major activities within the process
• Identify and map the activities for the selected activities
• Create process flowcharts connecting activities in sequence by functional area.
• Identify functions related to process.
• Identify the start and stop points of process.
• Utilise activities developed in the block diagrams.
• Further define activities.
• Map activities to functions.
• Determine and match inputs and outputs with adjacent blocks.
• Identify the sequence of activities (activities may be concurrent or sequential).
• Describe the relationship of activities along connection lines.
• Create activity models
• Identify core activity data
1. Collect data on each activity, and describe activity in detail.
• Select activities to decompose.
1. Only decompose those areas where problems have been identified or may be identified through the decomposition.
2. Include as criteria for selection : effectiveness, efficiency and opportunit
• Classify activity steps and create symbols for each category.
1. Operation: changes state of product toward final form or to meet internal requirements.
2. Store: removes item from process for later retrieval (add qualifier if permanently stored versus temporarily stored versus destroyed or discarded).
3. Decision: presents separate options.
4. Move/transport: any move other than hand-to-hand transfer between  operations.  May be items, data or information moved to or from position/unit.
5. Inspection/test: internal inspection (on-line review of own work), external inspection (independent test of others’ work)
6. Delay: in process waiting time (queue, awaiting instructions, process related)
7. Connector: provides mechanism to document linkages between process flow symbols on the process diagram, which may be separated and  difficult to connect without making the diagram cluttered.
• Create columns or rows.
1. Outside: documents, materials or information entering or leaving the function or unit in which the activity occurs
2. Functions e.g. functional area, departments, job titles etc. (work moving from one function to another should be recorded under the new function column/row)
3. Other areas involved in the activity (an activity may involved more than one unit)
4. Note that downward or side-flow movement along columns or rows represents time continuation and sequential steps.
• Place steps within their categories in the columns/rows.
• Identify flow with solid lines drawn between activities with arrows pointing to the next step symbol.
• Identify value-added operations (shade objects).
• Add text to describe step, time taken, etc.
• Verify data, information and flows

Guidelines

Tactics/Helpful Hints

• Ensure that process decomposition only go as deep as is needed to identify problems or describe solutions that you are trying to fix.
• Be aware that each activity or step should only decompose into a maximum of 1-5 other steps.  This ensures that the level of detail is consistent across process flow levels.
• Know that consistency is the key to a clear, organised chart.
• Understand that common pitfalls to process mapping are incomplete process diagrams and premature problem-solving.

• Process decomposition becomes easier when structured within and Entity Relationship Diagram and decomposed from an Organisation’s Value Proposition and Profit Model. This is ensures metrics are applied to the Value Chain and Supporting processes so that Profit and Value Proposition objectives are monitored continuously and adjustments made to process design as when required.
• From a business architecture perspective I believe ARIS to be one of the better tools. Although I do favour BPMN 2.0 as the preferred process nomenclature as there are many tools that can generate executable code from this standard. This enables standard software packages to be adapted to specific customer requirements whilst minimising customisation costs.

Process Characteristics Analysis

Description

• A technique to identify and assess attributes of business processes, which potentially influence the candidacy of these processes for redesign.  The characteristics supplement other, purely “business impact” considerations, by recognising additional constraints or influences (e.g. prohibitive regulations) which must be weighed into the selection decision.
• For example,  a process may be voted as having a high impact on the Critical Success Factors (see Process Impact Analysis).  However, if that process is highly regulated and changes in the regulatory environment appear highly unlikely, management may decide to focus its efforts elsewhere (thus eliminating it from the scope of the BPI initiative).

When to Use

• Process Characteristics Analysis is used in conjunction with the Process Impact Analysis to identify Focus Areas for the BPI program.

Guidelines

• Limit the number of process characteristics used in the analysis to the four to six, which have most significant contribution to Critical Success Factors. Consider the following points in making decisions.
• Customer service impact
• Financial impact: as measured by the cost of executing the process, or the amount of funds controlled by the process (such as procurement, materials management or accounts-payable processes).
• Number of steps or approval levels
• Duration: elapsed or applied cycle time
• Legal and regulatory constraints: While such processes may not be easy to redesign, do not  rule them out if the business impact is high and the organisation is in a position to influence/lobby for changes to the regulatory environment.
• Degree of automation – Be aware that processes that are already highly automated may be poor candi­dates for redesign.  Also, organisations may be reluctant to change radically those processes in which heavy investment in technology has recently been made.

Process Impact Analysis

Description:

• Process Impact Analysis helps to determine which areas/processes of the organisation should be targeted for design.  This technique systematically assesses the impact redesigning candidate processes will have in terms of the Critical Success Factors, Key Performance Indicators and/or Shared Values and Guiding Principles.

When to Use

• Process Impact Analysis is a technique to assist in the selection of initial Focus Areas for the BPI initiative. Subsequent, more detailed “As-Is” assessments are conducted as part of the Focus phase.

Approach

Process Impact Analysis draws upon the organisation’s Holistic Business Model, (Confirmed) Business Vision, Critical Success Factors, Key Performance Indicators and Shared Values and Guiding Principles. Depending on the client environment, the level of scrutiny of analysis will range from a subjective, qualitative assessment to a rigorous, quantitative approach. This choice is influenced by the number of processes being evaluated, knowledge of where problems lie within the processes, need for consensus and buy-in from management/employees and the relative sophistication of the organisation.

1. Identify processes to be analyzed
2. Develop process impact analysis framework

• Determine areas most pertinent to process impact (e.g. Critical Success Factors, Key Performance Indicators and Shared Values and Guiding Principles)
• Determine scoring/evaluation mechanism.  Possible presentation options include:
• High/medium/low impact ranking of each area (H/M/L)
• Shaded circles: filling in quarters of circle—empty equals no impact; full equals maximum impact
• Quantitative scoring:  rating impact on a scale of one through ten
• Allotted “money”: asking participants where they would spend a fictional, “X”
• Number of dollars if they unexpectedly received a windfall
• Weighted scores: ranking Critical Success Factors from most to least important, then scoring  each process (e.g. 1-10) to determine the average contribution to Critical Success Factors.
• Complete the framework
• Using the consensus, scoring system or other approach, finalise the opinions and decisions on the impact each process makes on the comparison information

Guidelines

Problems/Solutions

• Scoring and ranking algorithms tend to be overly-complicated and often not easily understood.  It is more important that the client understands how the scores were derived than for the scores to be exceptionally precise or complex.

Tactics/Helpful Hints

• Determine the scoring or other approach as part of work sessions with the client.  This allows the client to retain control over and take ownership of the selection of Focus Areas.

Example of a Quantitative Approach to Analysing the Impact of Business Processes on Critical Success Factors

Plateau Planning

Description

• Plateau Planning is a technique for planning and control of the implementation of integrated BPI programs. It provides a way to separate the implementation plan into manageable seg­ments that coordinate changes within the framework of four growth processes: Infrastructure, Management & Organisation, Processes & Services and People & Culture.

• Plateau planning is based on the idea that to manage major organisational change, we should manage complexity and risk by proceeding through a number of discrete “plateaus”.
• The Migration Plan describes each plateau and shows how the organisation will move from one plateau to the next over the migration period.

When To Use

• The method is useful for planning the implementation of multi-dimensional, integrated organisational changes.  With this type of change, management should have a clear picture of a desirable future state (the final goal).  This state must be defined in terms of a vision and the four growth processes: Infrastructure, Management & Organisation, Processes & Services and People & Culture.  However, the road towards the final goal is not yet known.  Some sample situations include the following:
• Implementation of the results of a business process redesign project;
• Implementation of strategic policy changes;
• Development of entirely new organisations.

Approach

• The growth processes mentioned previously are a key concept.  These growth processes are the critical dimensions that together define the organisational development needed.  The general idea, is that the growth processes must be in balance at any given plateau.  Therefore, processes must be balanced with IT, organisation & control and people, etc.
• Plateau Planning can be described as a step-wise planning tool.  On every plateau, a balanced situation should exist which makes flexible planning possible; plans can be changed at every plateau as shown in the following picture.

• Depending on the focus of the implementation, Plateau Planning can use two different sets of growth processes; the 'IT oriented' processes and the 'business-oriented' processes.  Both are described in following paragraphs.

IT oriented growth processes

• The IT oriented growth processes were originally introduced by Richard Nolan in his “stages theory”. This theory postulates that the development of the use of information technology can be seen as a learning process driven by four underlying growth processes. The Figure below shows an example of the IT growth processes.

• Every plateau is in balance, in term of the four growth processes as well as overall performance. BPI projects with a strong IT focus should use the four processes mentioned above.
• Each process can be defined as:
• IT-infrastructure: The resources in terms of IT-personnel, hardware, software, and network which are necessary to utilize the application portfolio;
• Management & organization: The organizational structure, performance measurement, and management principles of an IT organization;
• Users: The employees' premises that need to be fulfilled in order to utilize the application portfolio effectively and efficiently to achieve the organization's goals;
• Application portfolio: The interface between the automated tools and the users, that creates added value in line with the stated goals of the organization.
• The four IT growth processes should eventually lead to bottom line performance. This is measured in the centre square, where cost, benefits and other performance indicators track the results of the four processes.

Business oriented growth processes

• Transformation projects that are more generally business focused should use the business growth processes. The four business processes were designed by NNC in the 1980s. The processes are shown in the following picture

• Each process can be defined as:
• Infrastructure: The long term facilitating structure of the organization which consists of agreements, information technology, buildings etc.;
• Management & organization: The organizational structure, performance measurement, and management principles of an organization;
• Processes & services: The processes (primary and support) and services that create value added for the organization;
• People & culture: The perspective of the employees on the organization and their capabilities.

• The four business growth processes should eventually lead to bottom line performance. This is measured in the centre square, where cost, benefits and other performance indicators track the results of the four processes. The Balanced Business Scorecard provides a useful framework to develop such performance measures.
• To build a plateau plan the following four major steps are to be taken: Design the individual plateaus, Describe the goals, Plan the first plateau in detail, Secure control of the change in the organization.
• The goal of the first step is to create for every plateau a goal, theme, time frame and responsible person. The goal of the  second step is to refine the model as developed in step 1 to detailed results per growth process per plateau and identify the costs and benefits of each plateau. The third step will create a detailed action plan on how to get to the first plateau (and the zero-plateau “ready to start”). Finally step 4 has to make sure that planning is translated into action

1. Design the individual plateaus
1. Describe the desired goal of each plateau in general terms and assign a timeframe. Both should be challenging but realistic,
1. Make sure the organization signals change fast by putting big changes in the first plateau.
2. Introduce the bad news on first plateau
3. Start with organisational changes and let technical support follow
2. Produce a special theme per plateau. This theme should be a “catchy” phrase, which captures immediately the main issue of that plateau, and is easy to communicate.
1. Use themes that describe the major change aspect as seen by the (internal) customer and that inspire a mobilization of the organization
3. Assign a manager per plateau, who is responsible for the progress of the activities and communication with all the people involved
1. Discuss the names of the potential plateau manager thoroughly in the design teams to create support

2. Describe the goals
1. Define impact of a theme in refined goals/results for each of the growth processes.
1. Senior/top management should participate in the workshop
2. The growth processes should be balanced to an equilibrium
2. Identify the costs and benefits per plateau; one should strive to create a positive cost/benefit relation on every plateau
1. To determine cost use experts from client organization
2. Revenues can be defined in financial and/or non-financial terms
3. The Balanced Business Scorecard can be used for defining revenues
3. Plan the first plateau in detail
1. Define projects for the first plateau
1. Start by writing down the benefits of a plateau (as defined one step earlier) and identify the projects which are needed to realize these benefits (benefit project management)
2. Be aware that projects can cluster activities for more than one growth process
4. Secure control of the change in the organization
1. Assign project leaders to all projects
1. The plateau manager (as assigned in Step 1) is responsible for progress and for managing influences from the environment
2. Let the newly assigned project leaders check the validity of the plateaus designed in workshops (this will also create commitment)
2. Make an action plan per project
1. After assigning project leaders, plans per project are prepared by the project leaders
2. The action plan should consist of activities, starting points, conditions, constraints, etc.

Guidelines

Tactics/Helpful hints

• Let the level of detail of the PBI depend upon the detailed level of the earlier defined vision and design. A detailed description of the desired state of the growth processes is a necessity. If the design is not refined enough when you start the PBI planning, you should refine it during the planning process itself.
• The level of detail in the PBI planning also depends upon the level of sophistication of the organisation; if the company is used to implementing change processes a lower level will suffice.
• Using a performance measurement to track the project progress can be highly effective. If the target organisation does not (yet) have such a measurement system, we strongly recommend that you develop such a system. The (Balanced Business Scorecard) is a useful technique to identify the applicable performance measures.
• Always try to incorporate the methods and techniques which are already in use by the  company itself. This will smoothen the implementation of the organisational change.