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Process architecture comments and cases v1

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Brief overview of process architecture with examples

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Architecting the Enterprise
comments and cases on enterprise process architecture
Roger Tregear, March 2015
2
Copyright Notice
Copyright © 2015 Leonardo Consulting. All rights reserved.
This work is licensed under a Creative Commons Attribution-
NonCommercial-ShareAlike 4.0 International Licence
[http://creativecommons.org/licenses/by-nc-sa/4.0/]
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Business
Process
Management
4
The Business Process Creed
We believe in …
unimpeded flow of measurable value between an
organisation and its customers and other stakeholders
uncovering and eliminating wasteful activities
a workplace that enables staff to deliver value
eliminating frustration caused by broken processes
having more certain control over things that really matter
technology supporting business processes
continuous improvement + discontinuous innovation.
This is Business Process Management
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What is a Business Process?
Series of related activities
Triggered by an event
Transforms inputs into outputs
Delivers value (products & services)
to customers and other stakeholders
Includes all of the resources and assets required
for execution of the process
Business processes are the only way any
organisation can deliver value externally
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Process
OutputsInputs
Enablers
Guides
Management
Flow
Process
Perspectives
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Process-Centric
Perspective Functional
Organisation
Process
Organisation
Managing resources
Creating,
accumulating, &
delivering value
Key artefact:
organisation chart
Key artefact:
process architecture
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Organisations exist to deliver value to customers and
other stakeholders. That’s strategy.
They do this via coordinated activities across functions
of the organisation. That’s a process.
It makes sense to optimise processes for customers
and other stakeholders. That’s process improvement.
An aggregated view of process performance optimises
overall performance. That’s process management.
Process management puts focus on the processes that
realise the strategy. That’s execution.
From Strategy to Execution
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What is a Process Architecture?
Hierarchical description of processes with related
documents, performance measures, measurement
methods, and governance arrangements
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How is a Process Architecture used?
Visualise organisation’s set of processes
Understand execution of strategic intent
Communicate process information
Concentrate organisational focus on value delivery
Understand process interdependencies
Prioritise process analysis/improvement activity
Coordinate process project portfolio management
Provide repository of process information
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Building a Process Architecture
1. Identify the organisation in focus
2. Understand the strategic intent
3. Discover the Customer Value Proposition(s)
4. Name the Value Chain(s)
5. Decompose VC(s) into Level 1 processes
6. Decompose L1 processes into L2 processes
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Create,
Acquire &
Grow
Business
Integrate
Product/Service
Definition
Manage Suppliers Produce Product
Support Products
& Services
Define Production
Plan
Provide Parts,
Supplies, GFE &
Tools to Assembly
Assemble &
Deliver Product
Verify Production
Processes
Manage Material
Rqmts
Select Source
Negotiate & Award
Purchase
Contracts
Manage Supplier
Quality
Manage Supplier
Performance
Manage Supply
Base
Manage Gov
Property
Manage Inventory
Define & Manage
Product/Service
Requirements
Plan & Control
Product Service
Design
Concurrently
Develop Product/
Service/Build-to/
Buy-to/Support
Elements
Verify & Validate
Product/Service
Create
Opportunities &
New Markets
Acquire New
Business
Maintain/Grow
Existing
Business
Provide Supply
Support
Provide Field
Services
Provide Retrofit &
Modification
Services
Provide
Instructional
Systems Data &
Training
Provide Technical
Data
Provide Integrated
Support Planning &
Management
Provide System
Support Analysis
Provide Support
Equipment
Provide Financial
Services
Provide Human
Resources
Provide
Communication
Services
Provide Export/
Import Compliance
Provide Safety,
Health & Env.
Services
Provide Legal
Services
Manage Facilities
& Equipment
Provide Integrated
Information
Systems &
Services
Provide Enabling Infrastructure
Manage Non-
Production
Procurement
Provide Flight
Operations
Services
Provide Security &
Fire Protection
Services
Manage Program
Planning &
Execution
Administer
Contracts
Minimize Program
Risk
Provide Integrated
Performance
Mang. (Cost &
Schedule)
Manage IWA
Performance
Manage Programs
Boeing GMS: C-17 Program Value Chain
Ensure Integration
of Strategic Bus. &
Functional
Planning
Ensure
Organizational
Effectiveness
Perform Integrated
Bus Financial
Mang.
Ensure Customer
Satisfaction
Perform Self-
Governance Integrate & Deploy
Processes &
Procedures Strengthen the
Team
Provide Ethics
Guidance
Lead the Enterprise
Communicate
Positions &
Directions
Ensure Quality &
Mission Assurance
Insure Continuous
Improvement
Manufacturing
Example
Source: www.bptrends.com
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Hospital Example
(Value Chain or Level 0)
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SHARED SUPPORT PROCESSES
Maintain IT
systems
Support
personnel lifecycle
Maintain working
environment
Deliver
Projects
Procure goods
& services
Assure legal &
commercial compliance
Control financial
resources
Maintain
Hospital Image
Minimize
infection risk
Assure knowledge
management
CARE FOR PATIENTS
Register
patient
Evaluate &
diagnose patient
Plan patient
management
Manage
patient
Provide
aftercare
Discharge
patient
Educate patient & family
Enhance patient experience
L1
VC
L1
Hospital Example (Value Chain & Level 1)
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Register patient
Identify
patient
Collect
patient details
Confirm
eligibility
Arrange
required services
L2
L1
Evaluate & diagnose patient
Collect
medical history
Examine
patient
Request
diagnostic tests
Request
peer consult
Determine
diagnosis
Perform initial
assessment
Hospital Example (Level 1 & Level 2)
Control Financial Resources
Perform management
accounting
Manage
revenue
Perform general
accounting
Manage asset
accounting
Administer
payroll
Control treasury
operations
Control accounts
payable
Maintain financial
controls
Control accounts
receivable
Support personnel lifecycle
Maintain HR
policies
Recruit
staff
Monitor
performance
Retain
staff
Redeploy /retire
employees
Maintain staff
information
L2
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LEAD THE ENTERPRISE
Build strategic relationships
Govern
enterprise
Improve performanceDefine strategy Ensure project effectiveness
SUPPORT THE ENTERPRISE
Support staff
lifecycle
Generate
innovative ideas
Maintain ICT
systems & services
Apply organization
knowledge
Assure legal &
policy compliance
Control financial
resources
Maintain working
environment
Ensure data
privacy & security
DELIVER CUSTOMER SERVICE
Market Products/Services
Plan
Sales
Strategy
Target
prospect
Qualify
prospect
Define Products/Services
Research
target
markets
Define
market
gaps
Design
products/
services
Deliver Solution
Deliver project
Provide post-
implementation
support
Implement
project
Acquire
project
customer
Deliver service
Build &
launch
service
Acquire
service
customer
Retain
service
customer
Enhance service
customer experience
Enhance project
customer experience
IT Services Example
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University
Example
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Process Architecture & BPM Maturity
Business Process
Architecture in
common use
Source: Paul Harmon, BPTrends Associates
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Process & Enterprise Architectures
Putting
process
at the
centre
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Summary
A well-developed process architecture enables
effective process-based management and
continuous improvement
As well as defining the hierarchy of processes,
a process architecture increases strategic
understanding and improves strategy execution
Developing and using a process architecture is
a key step in increasing BPM maturity
Discovery and modelling a process architecture
is neither a complex nor lengthy exercise
Introducing Leonardo Consulting
putting process at the centre of business management
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Partners in Process
Organisations are traditionally managed via the organisation chart. Yet
not one of the entities shown on that chart can, by itself, deliver value to a
customer. The reality is that we create, accumulate, and deliver value by
collaboration across the chart. We manage resources vertically using the
organisation chart; we create and deliver value via business processes
operating across the organisation chart.
Organisations want to reduce costs, enhance products and services, and
be more attentive to customers. Business Process Management (BPM)
offers a practical solution, refocusing management on how value is
delivered to customers and other stakeholders. The focus is on the way
work gets done, and what impedes it being done in the most
straightforward, efficient and effective way.
Leonardo Consulting provides assistance with the seven enablers
that put process at the centre of business management.
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In practical terms,
BPM means continuously …
discovering, modelling and documenting the set of
processes that form the organisation
determining the performance targets for the
important processes
measuring process performance and responding to
measurement outcomes and trends
analysing process performance gaps, determining which
gaps need to be closed and taking action to do so
focusing on the execution of strategic intent by delivery
of value to customers and other stakeholders
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Organisations exist to deliver value to customers and
other stakeholders. That’s strategy.
They do this via coordinated activities across functions
of the organisation. That’s a process.
It makes sense to optimise processes for customers
and other stakeholders. That’s process improvement.
An aggregated view of process performance optimises
overall performance. That’s process management.
Process management puts focus on the processes that
realise the strategy. That’s execution.
From Strategy to Execution
25
The Business Process Creed
We believe in …
unimpeded flow of measurable value between an
organization and its customers and other stakeholders
uncovering and eliminating wasteful activities
a workplace that enables staff to deliver value
eliminating frustration caused by broken processes
having more certain control over things that really matter
technology supporting business processes
continuous improvement + discontinuous innovation.
This is Business Process Management
26
7 Enablers
• Practical
• Proven
• Effective
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Together, we …
document the process architecture
This allows you to …
• understand how you create & deliver value
• focus clearly on the most important elements
Together, we …
define process measures
This allows you to …
• deeply understand organisational performance
• prioritise process improvement investments
Together, we …
establish process governance
This allows you to …
• respond to process performance anomalies
• sustain continuous performance improvement
Together, we …
improve process performance
This allows you to …
• resolve important performance issues
• realise process improvement benefits
Together, we …
raise & sustain process awareness
This allows you to …
• create a mindset of continuous improvement
• generate enthusiasm for performance excellence
Together, we …
enhance process capability
This allows you to …
• develop consistent, reusable approaches
• build inhouse process improvement capability
Together, we …
establish ongoing process support
This allows you to …
• maintain process improvement quality
• embed continuous performance improvement
Together, building BPM
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2 Virtuous Circles
the essence of process-based management
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Accelerating BPM development
Leonardo Consulting provides consulting, education and technology
accelerators for organisations wishing to develop higher levels of maturity
in each of the seven enablers of BPM.
For 15 years we have been a trusted advisor to our customers delivering
quality education, technology and consulting services. Our approach is
process-centric; our focus is performance-driven.
Our ability to assist organisations with innovative process-based
management is sound, practical, deep and proven.
Our work is unrelentingly focused on helping customers achieve their
goals using business process-centric management approaches.
Leonardo Consulting specialises in helping organisations achieve
effective process-based management. It’s what we do. It’s who we are.
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Leonardo BPM Curriculum BPM Consulting Services
BPM Maturity assessment
Process Improvement projects
Process Architecture development
7 Enablers Rollout
Office of BPM development
Executive BPM coaching
Process practitioner coaching
Process performance analysis
Process governance design
Process modelling management
Process automation
BPM capability development
Measuring Processes
3 days of valuable insights into, and practical tools
for, the discovery, definition and management of
effective process performance measures
Improving Processes
This 3-day course delivers practical advice and
tools you can use immediately to generate great
process change ideas. Stop relying on chance.
Process Modelling Excellence
This 1-day, tool-neutral seminar is a breakthrough
experience for modellers and those who manage
them. It will improve your Return on Modelling.
BPTrends Professional Certificate
Over 5 days the Professional Certificate program
teaches a practical approach to analysing,
measuring and improving process performance.
BPTrends Enterprise Certificate
Beyond process improvement, the Enterprise
Certificate 5-day program teaches how to build
and maintain a truly process-centric organisation.
New
Process
Utilisation
potential practices
Derivation
better practices
Enhancement
current practices
Innovation
new practices
analytical
creative
New
Process
New
Process
Utilisation
potential practices
Derivation
better practices
Enhancement
current practices
Innovation
new practices
analytical
creative
31
Brisbane
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Silverton Place
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Brisbane QLD 4000
+61 (0)7 3831 5511
Marco Fargnoli
m.fargnoli@leonardo.com.au
Perth
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Sydney NSW 2000
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j.fausold@leonardo.com.au
Melbourne
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Melbourne VIC 3000
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George Smith
g.smith@leonardo.com.au
Arab States Associate
ES Consulting
7634 Al Madhar,
As Sulimaniyah
Riyadh 12621 2652
Saudi Arabia
+966 11 4654484
Abdulrahman AlForaih
a.alforaih@esconsulting.com.sa
New Zealand
Roger Tregear
+61 (0)419 220 280
r.tregear@leonardo.com.au
North America
Sandeep Johal
+1 203 7229911
s.johal@leonardo.com.au
Contact us … around the world