Week 7: Business Process Analysis COIT 20252 BPM Week 7: Business Process Analysis

Objectives Scope process problems On completion of this module you should be able to: Scope process problems Divide the process hierarchy into three parts Differentiate and identify simple and complex processes Develop a gap model Identify generic types of process problems Develop a process analysis worksheet Develop a process scoping diagram Develop a business case for a process change © Ritesh Chugh

Understanding and Scoping Process Problems Explore the problem. Gather information to understand the problem. Consider the nature of business process problems. Scope a process redesign or improvement project. © Ritesh Chugh

What is a process? A bounded set of activities that are undertaken, in response to some initiating event, in order to generate a valued result. Processes can be very simple or extremely complex. Consider whether a process functions as: - a core or operational process, a management process, or an enabling or support process. Harmon, 2014, Pg. 186 © Ritesh Chugh

Process Levels and Levels of Analysis Usually divide the process hierarchy into three parts and associate problems and analysis techniques with specific levels. One set of process analysis techniques is used to redesign or improve higher-level processes. Another set is used on the types of process problems we find in the middle of the process hierarchy. Still another set of techniques is appropriate for processes at the bottom of the hierarchy. © Ritesh Chugh

Process Levels and Levels of Analysis (Contd..) Harmon, 2014, Pg. 188 © Ritesh Chugh

Simple and Complex Processes Simple processes usually follow a consistent, well-defined sequence of steps with clearly defined rules. Each step or task can be precisely defined and the sequence lacks branches or exceptions. More complex processes involve branches and exceptions, usually draw on many rules and tend to be slightly less well-defined. They require more initiative on the part of human performers. Harmon, 2014, Pg. 189 © Ritesh Chugh

Knowledge Work(ers) Today’s workers are engaged in tasks that require more knowledge. This implies that the workers use computers to acquire or manipulate the information they need to do their jobs. Perhaps even your doctor is using an IS to aid in diagnosis! Harmon, 2014, Pg. 190 © Ritesh Chugh

Business Process Problems A problem is the difference between what exists now and what we desire. A model of problem solving—the Gap Model. Harmon, 2014, Pg. 191 © Ritesh Chugh

Business Process Problems (Contd..) Performance gap - difference between measures of the performance of the As-Is process and the To-Be process. Capabilities gap - difference between how things are done now and how they could or should be performed in the redesigned process. Harmon, 2014, Pg. 192 © Ritesh Chugh

Business Process Problems – An Example (Gap Model) 1. Define the as-is processes 2. Determine why it needs to be changed. 3. Define what the to-be process should do or not do when the project is completed. 4.Consider the means you will use to bridge the capability gap. 5. Consider what bridging the gap will cost in terms of time, cost and effort. Harmon, 2014, Pg. 193 Harmon, 2014, Pg. 141 © Ritesh Chugh

The Initial Cut: What is the process? Define a process with a verb-noun phrase. Acquire more information – define the inputs and the outputs. Define major sub steps in the overall process. Talk to management to ascertain problem. Develop a list of stakeholders. Seek to refine our understanding of the problem. Harmon, 2014, Pg. 194 © Ritesh Chugh

Refining an Initial Process Description Create a process scoping diagram, which will help to analyse the relationship between a given process and its environment. Harmon, 2014, Pg. 196 © Ritesh Chugh

Cause–effect diagram (Ishikawa or fishbone diagrams) Usually, this diagram works better for smaller problems. Harmon, 2014, Pg. 197 © Ritesh Chugh

Six generic types of process problems Output problems Input problems Problems with controls Problems with enablers Process flow problems Day-to-day management problems (Problems 5 & 6 will be discussed in the next chapter.) © Ritesh Chugh

Output Problems Output problems result when the “customer” of the process is not getting what is needed. Outputs can take different forms, including physical entities, information or data, or decisions/approvals. Quality of output Quantity of output Timeliness of output © Ritesh Chugh

Input Problems This type of problem results because the “suppliers” of the process in scope are not producing what is needed by the process in scope. Suppliers can include companies, individuals, or other processes and “inputs” can include things, information, money, or even temporary employees. Quality of input Quantity of input Timeliness of input © Ritesh Chugh

Problems with Controls Controls define or constrain how a process is performed. Four general types of control problems: Process in scope not aligned to organization or value chain strategy Problems with policies or business rules Problems with documentation, manuals, etc. Problems with external management processes © Ritesh Chugh

Problems with Enablers Problems with enabling or support processes arise when those processes fail to provide or maintain the resources needed by the process in scope. Four types of problems with enablers: Employee problems IT problems Facilities, equipment and location problems Accounting and bookkeeping problems © Ritesh Chugh

Process Analysis Worksheet Prepared while talking to stakeholders and lists the problems encountered. Harmon, 2014, Pg. 204 © Ritesh Chugh

Process Scoping Diagram © Ritesh Chugh Harmon, 2014, Pg. 205

Creating a Business Case for a Process Change Project Steps in defining a preliminary business case include: Define the As-Is process. Determine what the As-Is process is or is not doing now. Define what the To-Be process should or should not do when it is completed. Consider the means you will use to bridge the capability gap. Then consider what bridging the gap will cost in terms of time, cost, and effort. Finally, consider the risks and the “politics” and revise if needed. © Ritesh Chugh

Business Case Worksheet © Ritesh Chugh Harmon, 2014, Pg. 208

In summary Consider the nature of processes. Scope the problems. Identify the gaps. Recommend changes that might make a difference. © Ritesh Chugh

Lecture Content Source Harmon, P 2014, Business process change: a business process management guide for managers and process professionals, 3rd edn, Morgan Kaufmann-Elsevier, Waltham, MA. (Chapter 8) © Ritesh Chugh

Next Week Business Process Modelling- Chapter 9 (Modelling Business processes)