Published on March 13, 2014
PROCESS RENEWAL GROUP PRG-Architecture-1 Business Process Management The Foundation for Alignment and Traceability Roger T. Burlton The Process Renewal Consulting Group Inc. www.processrenewal.com +1-604-945-7352 email@example.com
PROCESS RENEWAL GROUP PRG-Architecture-2 Copyright Business Process Management: This seminar contains proprietary methods and materials developed by The Process Renewal Consulting Group Inc.. They may not be copied, recorded, transmitted or reused without the expressed permission of the author. All rights reserved.
PROCESS RENEWAL GROUP PRG-Architecture-3 Time To Profit
PROCESS RENEWAL GROUP PRG-Architecture-4 Improving Time To Profit and Time in Profit Reduce Costs Reduce Time to Market Increase Revenue
PROCESS RENEWAL GROUP PRG-Architecture-5 Provide Capability The Role of Process in Business Performance Owner's Requirements Rules and Regulations Consumable Resources Business Customer LoyaltyCustomer Requirements Data 100110011 110011010 010100111 010101100 Information and Knowledge Business Pressures Goods and Services Processes FacilitiesC & C Technology Staff Understand
PROCESS RENEWAL GROUP PRG-Architecture-6 Business Environment Understanding Stakeholder Relationship Management Knowledge Management Process Management Technology Management As business product cycles are changing more and more rapidly and each organization is required to form an individual and unique relationship with each of its customers and other stakeholders, only flexible processes and maneuverable technologies can enable knowledgeable staff to make the commitments required to continuously adapt. Alignment of Critical Competencies
PROCESS RENEWAL GROUP PRG-Architecture-7 Balanced Scorecard: No single measure is sufficient: we must have multiple areas of focus Traditionally – Financial bottom line Now we need other indicators such as customer satisfaction, internal processes and innovation and learning We need predictive measures not just after the fact reports. The construction of a connected measurement system is critical to take overall targets, and develop strategy down to the level of what people do every day. “What you measure is what you get” Kaplan and Norton. Strategy and Measurement in the Knowledge Age
PROCESS RENEWAL GROUP PRG-Architecture-8 Stakeholder* Relationship Management: Multiple Stakeholders Play a Role What happens if any one is missing or ignored? * A Stakeholder is anyone or any group that has a vested interest in or can influence the organization’s performance. Suppliers Staff Community Customers Owners Enterprise Itself What happens if the requirements are in conflict?
PROCESS RENEWAL GROUP PRG-Architecture-9 Explicit Relationship Attributes Current State For Each Type & Sub Type • Values / Principles • KPI’s and Actual Performance Measurements • Interactions • Business Events / Outcomes • Flows (Things, Data, Knowledge, Commitments) • Health Future State For Each Type & Sub Type • Values / Principles • Vision / Expectations • KPI’s and Performance Targets • Interactions • Business Events / Outcomes • Flows (Things, Data, Knowledge, Commitments) • CSF’s Start with the Customer Lifecycle and then work to the Suppliers / Partners and then other supporting relationships in the value chain
PROCESS RENEWAL GROUP PRG-Architecture-10 Start with the criteria for the Customer Relationships then look at the Supplier and Partner Relationships which are critical to the value chain and then look at any others that may be required. From Customers to Other Stakeholders Organization in Focus Customer Type 1 Customer Type 2 Customer Type 3 Supplier Type 1 Supplier Type 2 Staff Owners Community Start with these Then do the rest Then these
PROCESS RENEWAL GROUP PRG-Architecture-11 Evaluation Criteria for Planning, Prioritization and Decision Making What criteria will your organization use to decide among competing options for change ? Without Business Context these questions cannot be answered: Business Drivers Business Stakeholder Strategy Process Mgmt Business Context What? How? Where? When? Who? Why ? Whence? N
PROCESS RENEWAL GROUP PRG-Architecture-12 The complex Stakeholder Relationships can only be managed through Business Processes working at optimum performance. Process Management Customer Type 1 Customer Type 2 Customer Type 3 Supplier Type 1 Supplier Type 2 Staff Owners Community Everything which flows must link to at least one process
PROCESS RENEWAL GROUP PRG-Architecture-13 Business Process as Primary Enabler Is triggered by an external event involving a stakeholder Is comprised of all the actions necessary to provide the appropriate business outcomes in response to the triggering business events. Transforms inputs of all types into outputs, according to guidance(policies, standards, procedures, rules etc.), employing reusable resources of all types. Contains logical steps which usually cross functions and often organizational units. Has performance indicators for which measurable objectives can be set and actual performance evaluated. Delivers a product or service to an external stakeholder or another internal process Capture Trigger Manipulate/ Transform Retrieve Store Manipulate/ Transform Manipulate/ Transform Manipulate/ Transform Guide Enable Deliver Outcomes Anatomy of a Process Hand-off
PROCESS RENEWAL GROUP PRG-Architecture-14 CORE business processes are linked directly to external customers and require knowledge to deliver optimum value. GUIDING business processes provide direction, rules and practices by embedding or embodying knowledge. ENABLING business processes provide facilities, tools and access mechanisms to embedded or embodied knowledge. Objects of Process Transformation : Physical Materials Data / Information Commitments Knowledge Process and Knowledge Interdependence
PROCESS RENEWAL GROUP PRG-Architecture-15 Sample Process Architecture Diagram Note: Lines represent major relationships only ! Note: Lines represent major relationships only ! 8. Provide Post Sales Service Guides to all Other Processes 7. Supply Human Resources 5. Develop and Maintain Facilties (Need to Retirement) 16. Purchase Supplies / Manage Logistics 9. Plan Strategies 10. Set Policy, Rules, Interpretations 2. Change Processes and Enablers 12. Provide Information Technology Services 11. Provide Financial Services 14. Ensure Compliance Enablers to all Other Processes 6. Report Business Results 14. Develop Products 13. Understand Market and Acquirre Customers 3. Make Customers Aware 4. Manufacture / Acquire Product 1. Fulfill Orders
PROCESS RENEWAL GROUP PRG-Architecture-16 Greatest Affinity / Importance Ranking B i g g e s t G a p R a n k i n g 1 1 2 3 3 4 4 8 5 5 6 13 7 16 8 14 9 6 10 15 11 7 12 12 13 2 14 9 15 10 16 11 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1 2 3 Process Migration Strategy Process Number
PROCESS RENEWAL GROUP PRG-Architecture-17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Knowledge Area Affinity / Business Value Rank A c c e s s i b i l i t y G a p R a n k Knowledge Area Migration Strategy
PROCESS RENEWAL GROUP PRG-Architecture-18 1 2 3 4 5 6 7 8 9 10 11 12 13 13 12 11 10 9 8 7 6 5 4 3 2 1 Technology Potential Rank E a s e o f D e p l o y m e n t R a n k Technology Migration Strategy
PROCESS RENEWAL GROUP PRG-Architecture-19 Business Strategy Business Architecture Program Management Alignment: The Basis for Traceability Business Process Architecture Technology Architecture Information Architecture Org/HR Strategy Other Strategies Migration Strategy Project Portfolio Business Drivers Business Stakeholder Strategy Process Mgmt A lignm ent Traceability
PROCESS RENEWAL GROUP PRG-Architecture-20 The ongoing delivery of measurable business performance through synchronized optimization of: whole processes their guiding factors their enablers What is Business Process Management ? Local Resturant Finance & Administration Marketing & Sales Purchasing Transporation Catering Banquet Services Accounts Payable Accounts Receivable Legal Sevices Faciliticies Management Human Resources Customer Service Information Systems Operations Food Preparation Logistics Credit Delivery Roles & Jobs Organization Structure Policies,Rules, Regulations Facilities Processes Business Business Performance Human Resources Computing& Communications Technology
PROCESS RENEWAL GROUP PRG-Architecture-21 The Process Management Framework Business Context Architect & Align Vision Understand Renew Redevelop Implement Nurture & Continuously Improve Political Commitment Management • Awareness • Understanding • Willingness Quality / Risk Management • Risk / Reward • Gating Checkpoints • Resource Commitment • Opportunity Cost Project Management • Communications • Perceptions • Commitments Technology Enablers • Infrastructure • IT Applications • Communications • Front End Devices Human Enablers • Skills • Capabilities • Attitudes • Incentives
PROCESS RENEWAL GROUP PRG-Architecture-22 Required Reading For articles, training courses and professional services in Process Management, see www.processrenewal.com or contact Roger Burlton rburlton@.processrenewal .com
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