"What to do When Process Modeling Doesn’t Work" – a chapter from "Mastering the Unpredictable" by ActionBase
Description
Unstructured, unpredictable human processes make up the bulk of processes in today’s organizations. This is the kind of work carried out by knowledge workers using email, documents and meetings.
Adaptive case management is an approach to managing these processes, and the book "Mastering the Unpredictable" brings together a number of thought leaders in this new emerging area.
This presentation is on the second chapter – "What to do When Modeling Doesn’t Work?"
Transcript
What to do when process modeling doesn’t work?
Using adaptive case management (ACM) for ad-hoc, unpredictable human processes
Jacob Ukelson, D.Sc.
April 15, 2010
jacobu@actionbase.com
Agenda
- Are there really ad-hoc, unpredictable business processes that can’t (or shouldn’t) be modeled?What type of processes can’t be modeled?How are they handled today?Is that a problem?Can adaptive case management (ACM) help?Does ACM replace traditional BPM?
10-20% of processes
80-90% of processes
(aka Knowledge Worker Processes)
Classification of Knowledge Intensive Processes
Davenport, T. (2005)
Thinking for a Living.
Harvard Business Press
Processes that can be modeled
Processes that can’t (shouldn’t) be modeled
When Shouldn’t a Process be Modeled?
- Processes that consist mainly of interactions between human participantsCollaborationNegotiationContent (aka documents)is an integral part of the work, it is both consumed and produced as part of the processThe participantscontrol the process, and change it on a case-by-case basisFlow changesParticipant changesActivity changes
Documents
Group Collaboration
RealTime communication
Information Overload
Ad-hoc, Unpredictable Process Scenarios
Decisions and Reviews
Board
of Directors
international
banking
division
real
estate
division
CFO
Ad-hoc, Unpredictable Process Scenarios
Complex and Personalized Processes
Customer
Request
Customer
rep
CFO
Products
Ad-hoc, Unpredictable Process Scenarios
Audits and Compliance
>50 audit review documents
~3-4 versions per document
Aggregating findings and recommendations
Tracking ~5000 actions
Compiling reports manually
“Chasing” information and status updates
MoreAd-hoc, Unpredictable Process Scenarios
- Complex Project ManagementRegulatory Process HandlingException HandlingInvestigationsContract ManagementRFPRFI ManagementNew plant planning
45% of knowledge workers spend over 4 hours a week on email follow-up!
41% spend more than 4 hours each week on passing documents between decision makers to get approvals
8 hours a week ~ 20% of working time ~ $10,000 – $15,000 wasted each year per employee
41%
An ACM system can cut that waste by about 50% (on average)
$6000-$10,000 annual savings per knowledge worker
45%
Disciplined Autonomy, Resolving the tension between flexibility and control Laserfiche and the Economist Intelligence Unit Survey of 227 executives
Ignoring Ad-hoc, Unpredictable Processes is Dangerous
Operational Risk Factors
Process Risk
PéterFehér- BACEE-ISACA Conference on Operational Risk in the Financial Sector 2009
What can Adaptive Case Management Do?
- Ensure every process instance has an ownerEnsure every process instance has a goal, deadline and a defined work product a goal defines what must get done, not how the process is donemay also provide an associated guideline or best practice that gives a generic outline of the processProvide visibility within the context of the execution of a process instance, or after it is completedetails on both the emerging flow of the process (the hand-offs between participants) and the work done by each participant (either in summary or detail form)Failed handoffs are the most likely cause of process failureProvide management and control through tracking, deadlines and goalsprocess participants decide how to best achieve their goals,process owner can track the current process state and progress“Hawthrone effect” can change participant behavior
- Many important business processes are actually a mix of routine and unpredictable processes e.g. exception handling, environment changes, innovationACM can be used for “in-situ” process discovery and as process management quick startGartner – Design by doing, not Doing by designACM extends process management to new use casese.g. MeetingsDecision ManagementCase handlingOperational process warehouseand process system of record
Mastering
the
Unpredictable
The new book on how
Adaptive Case Management
will revolutionize the way
that knowledge workers
get things done.
http://www.MasteringTheUnpredictable.com
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