Analyzing Your Business Processes and Documenting Procedures Greg Verret UNC Charlotte

Session Etiquette Please turn off all cell phones. Please keep side conversations to a minimum. If you must leave during the presentation, please do so as quietly as possible. Thank you for your cooperation! 2

Agenda 1.Process Analysis 2.Documentation (a.k.a – “procedures”) 3.Wrap-up 3

Module 1: Process Analysis Understanding and Defining Your Business 4

What is “Process Analysis”? 5 Review of the existing business functions, activities, and tasks that enable the execution of your department’s operations Identifies key inputs, outputs, dependencies and hand-offs Enables continuous improvement Not just process mapping Usually confused with procedures Often is missing

Process vs. Procedure 6 Process ≠ Procedure A process consists of the underlying functions, activities and tasks your organization must perform to fulfill its mission. What are you in the business of doing? A procedure refers to documented instructions used by your personnel to perform the actions required to operate your business processes. How do I do it?

Terminology 7 Process Function: A group of related activities or tasks that accomplish a specific objective. Activity: A component within a process function; usually represents a collection of related tasks. Task: A component within an activity; usually represents a specific action to be performed by a specific individual. Once we’ve defined our process…. Procedure: A documented set of instructions used to guide personnel in performing the related activities and tasks within a process.

Business Process Breakdown 8 Adapted from the Business Process Management Institute, “Analyzing the ‘As-Is’ Process”.

Business Process Breakdown (continued) 9

Business Process Breakdown Example 10 This is the “50,000-foot” view Each green box represents a process function, with sub-processes listed below

Business Process Breakdown Example (continued) 11

Key Points 12 Process ≠ Procedures You must first define and organize your business into process functions (“50,000-foot view”) Then, drill-down into each process function and identify the underlying sub-processes/activities/tasks that occur (“5,000 foot view” and below). Meet in a room with a whiteboard and map it out (Microsoft Visio is also helpful) Try to keep it simple – only include as much detail as you need to identify the key actions/tasks

Module 2: Process Documentation Basics Suggestions on How to Develop and Maintain Procedure Documentation 13

Why document procedures? 14 Minimize operational ambiguity Drive consistency and compliance Help ensure continuity of operations Serves as a training tool Enables continuous improvement Identifies value added and non-value added tasks Identifies design inefficiencies/gaps Identifies internal controls (auditors will ask and test) Enables deeper understanding of how processes relate

What should “procedures” look like? 15 Title Ownership of activity/task (e.g.--Department/Office) Goal/objective of the activities and tasks described in the procedure How often is the activity performed? Step by step (task) How to do it = procedure Define your terms and acronyms Include links to documents, laws, policies, other documents What to doWho does itHow to do itReference

Procedure Template 16

Maintain Procedures 17 Organize your procedures –Follow the same structure as process functions –Develop a basic index or outline –Store files centrally to ensure accessibility Review and approve regularly –Implement periodic routines for the review, update and approval of procedure documentation (annually, quarterly, etc.) –Managers can delegate the task of updating procedures, but should not delegate approval –Senior management should emphasize importance

Index Example 18

How to get started 19 Analyze your Business Identify core process functions (the “big rocks”) Drill-down into process functions to identify activities (do this with subject- matter experts) Then drill-down into activities to identify tasks Organize and Document Inventory existing process documentation and its status Organize into a master index or outline Develop a standard template for documentation and distribute Set a due-date for documentation to be completed Maintain and Update Establish a periodic routine for managers to update, review and approve procedures Clearly communicate expectation throughout organization

Questions?

Thank You! Greg Verret