Business Process Analysis for [client, dates] Presented by [presenter] [title]

2 Session Objectives u Learn to apply SunGard SCT’s methodology for gathering information about, modeling & analyzing business processes u Learn criteria for selecting processes to improve & techniques for improvement

3 Topics for Discussion u Business processes & their analysis u SunGard SCT’s process information gathering, documentation & analysis methodology u Business process improvement

4 Purpose of BPA u To facilitate interdepartmental understanding of joint processes u To identify process & communication problems u To identify areas for process improvement before, during, & after implementing new information systems

5 Benefits of BPA u Creates an open, non-threatening space for the sharing of knowledge about a process u Promotes a cross-enterprise viewpoint u Identifies key business issues & areas for improvement u Aligns business processes with institutional goals u Strengthens staff’s ability to deal with change

6 Process ‘Task’ Defined u Work which is typically done by one person, such as changing an address or updating benefit information

7 Business Process Defined A related group of tasks that together create a result of value to a customer

8 Functions vs. Processes u Business functions are usually departmentalized; e.g., Department/Bureau/Division/Office of… etc. – & structured in vertical hierarchies u Business processes tend to operate horizontally – across functional boundaries, often involving multiple departments

9 Sample Enterprise Functions Finance Registrar Admissions Academic Units

10 Sample Enterprise Processes Processing Tuition Admitting Students Enrolling Students Monitoring Progress

11 Sample Enterprise Processes Finance Registrar Admissions Academic UnitsFinance Processing Tuition Admitting Students Enrolling Students Monitoring Progress Finance Registrar Admissions Academic Units Tend to operate horizontally – Across functional boundaries

12 Cross-Enterprise Processes Finance Admitting Students Finance Registrar Admissions Academic Units

13 Cross-Enterprise Processes Finance Enrolling Students Finance Registrar Admissions Academic Units

14 Cross-Enterprise Processes Finance Monitoring Progress Finance Registrar Admissions Academic Units

15 Cross-Enterprise Processes Finance Processing Tuition Finance Registrar Admissions Academic Units

16 A Hierarchy of Business Processes Recruiting To Graduation Enrolling Students Admitting Students Enrolling Students in Degree Programs Admitting Undergraduate Students Admitting Postgraduate Students Enrolling Continuing Ed. Students Application For Aid To Disbursement Matriculation To Education Admission To Enrollment

17 FRAMING THE PROCESS BPA Information Gathering Methodology * - Phase I 1.Name the Process 2.Define the Business Objectives & Terms 3.Establish Process Boundaries & Identify Inputs and Outputs 4.Identify Process Actors 5.Identify Process Owner 6.Identify Process Stakeholders * Based on the work of Dianne Galloway: Mapping Work Processes

18 * Based on the work of Dianne Galloway: Mapping Work Processes 7.Describe Tasks Associated with Process 8.Describe Decisions Associated with Tasks 9.Cross Check 10.Arrange Tasks in Sequence 11.Establish Metrics & Identify Additional Relevant Information 12.Identify Institution’s Change Process DESCRIBING THE PROCESS BPA Information Gathering Methodology * - Phase 2

19 BPA Metrics – Volume & Staffing u Volumes of transactions occurring within the process (how many occur within a unit of time) u FTEs required to accomplish the process

20 BPA Metrics – Cycle Time u Cycle time (how long it takes to do one transaction) measured from beginning to end n Idle time (time spent waiting)

21 BPA Metrics – Process Calendar u Identify process calendar n When does the process occur in the year? n When does the process occur in relation to other processes?

22 Process Modeling Tool u Cross-functional (‘swim lane’) model u Narrative with details of process

23 Swim Lane Process Model

24 Narrative of Model

25 Narrative of Model

26 Narrative of Model

27 Narrative of Model

28 Narrative of Model

29 Engineering the Enterprise u Capture the ‘As-Is’ State u Define the ‘Should-Be” State u Negotiate the ‘Can-Be’ State u Analyze the ‘Can-Be’ State

30 Define the ‘should be’ state u By applying process improvement techniques

31 Reengineering versus Continuous Improvement Michael Hammer: Beyond Reengineering Q R Q Q R Q = Quality Programs R = Reengineering Process Performance Time

32 Selecting Processes to Improve u Selection criteria: n Add value for your customers n Contribute to organizational goals n Have potential for significant improvement

33 Selecting Processes to Improve u Potential for Significant Improvement = n Broken Process + n Feasibility of Redesign u No. of organizational units involved u Cost u Strength of team u Commitment of process owner

34 Five Signs of Broken Processes u Symptom 1: Extensive information exchange, data redundancy, and re- keying u Disease 1: Arbitrary fragmentation of a natural process Hammer & Champy: Reengineering the Corporation More

35 Five Signs of Broken Processes u Symptom 2: Inventory, buffers, and other assets u Disease 2: System slack to cope with uncertainty Hammer & Champy: Reengineering the Corporation More

36 Five Signs of Broken Processes u Symptom 3: High ratio of checking & control to value adding u Disease 3: Fragmentation Hammer & Champy: Reengineering the Corporation More

37 Five Signs of Broken Processes u Symptom 4: Rework & iteration u Disease 4: Inadequate feedback along chains Hammer & Champy: Reengineering the Corporation More

38 Five Signs of Broken Processes u Symptom 5: Complexity, exceptions & special cases u Disease 5: Accretion onto a simple base Hammer & Champy: Reengineering the Corporation

39 Process Improvement Methodology Apply these four steps in order 1.Eliminate 2.Simplify 3.Integrate 4.Automate

40 1. Eliminate u Activities that do not add value n Duplication n Reformatting n Waiting time

41 2. Simplify u Forms, procedures n For example, where checking cannot be eliminated, develop critical, objective, measurable & practical standards

42 3. Integrate u Business example: integrating suppliers into Purchasing process u Higher ed example: integrating Financial Aid and Admissions to provide “one-stop shopping” for students

43 4. Automate u Don’t pave the cow path! u Automate only after application of the preceding process improvement techniques

44 Process Improvement Techniques Applied u Two schools n Traditional College n Cutting Edge College u Two processes n Buy/Pay n Hiring

45 Traditional College - Buy/Pay

46 Cutting Edge College - Buy/Pay

47 How is Cutting Edge different? u 5 steps vs. 10 for low dollar purchases u 12 Steps vs. 14 for high dollar purchases u $2,500 approval limit vs $500 (simplify) - will drive most purchase traffic through the simpler branch u Purchasing Card used in place of Small PO u Centralized receiving function eliminated u Ready to look for opportunities to automate

48 Traditional College - Hiring

49 Cutting Edge College - Hiring

50 How is Cutting Edge different? u 13 steps vs. 24 u Budget / position approval sub-process separated (simplify) u Applicant visits to Personnel and Benefits Offices eliminated u ID card production integrated into Personnel eliminating Police role u AAEO Audit moved to end of process u Ready to look for opportunities to automate

51 General Strategy u Increase departmental autonomy and accountability u Create simple and transparent processes u Minimize reviews and approvals u Use technology to monitor performance

52 Summary u Know your processes well u Simplify and improve them u Improve processes before automating them

53 Suggested Readings Dianne Galloway, Mapping Work Processes. Milwaukee, WI: ASQ Quality Press, ISBN

54 Suggested Readings Michael Hammer & James Champy, Reengineering the Corporation: A Manifesto for Business Revolution. Revised edition. New York, NY: HarperCollins Publishers, Inc., ISBN

55 Suggested Readings Michael Hammer, Beyond Reengineering. New York, NY: HarperCollins Publishers, Inc., ISBN

56 Questions?