A central theme in nearly all projects is the importance of understanding the business behind the work effort. The idea of Business Process Management is critical for the BA role because it provides a framework to map and manage the organization’s business processes. It starts at a basic level, answering the question of how we are operating today. Understanding the current state allows for a common starting point across functional areas of the organization to drive efficiencies, reduce defects, and eliminate disparate processes. This can be achieved through process change, or through the use of BPM software to automate process workflows.
2. Business Process
Management
What is Business Process Management (BPM)
BABOK v3 Perspective
Frameworks & Techniques
Case Study
Tools & Work Products
Activity
Agenda & Objectives
3. About me…
• Kyle Becker
• Business Analyst for 12 years
• Financial Services Technology Industry
• Currently a Senior Business Systems Analyst at
• Professional Development Committee – IIBA CFC
4. What is Business Process Management?
Business Process Management (BPM) is a management discipline
and a set of enabling technologies that:
•Focuses on how the organization performs work to deliver value
across multiple functional areas to customers and stakeholders
•Aims for view of value delivery that spans the entire organization
•Views the organization through a process-centric lens
5. Goal of Business Process Management?
• Improve operational performance, and to reduce costs and risks
o Effectiveness
o Efficiency
o Adaptability
o Quality
• Eliminate process
silos through
process awareness
6. Process Silos – Baby Bedtime Routine
Daddy
Silo
Mommy
Silo
Pick up baby from
day care
Play with baby
Rocks baby to
sleep
Bath baby
Dress baby in
pajamas
Hand baby off to
Mommy
Finish
Swaddles baby
Lays sleeping
baby in crib
7. BPM Delivery Approach
• Substantial Discovery
o Baseline current state business processes, start from a blank
slate (link)
• Process Benchmarking
o Compare current state processes to others in the industry
• Evolutionary Forms of Change
o Individual and targeted changes to align with overall
objectives
• Business Process Re-Engineering
o Major process redesign across the enterprise
• Specialized BPMS Applications
o Workflow management, process automation, modelling
8. BPM Framework & Techniques
Frameworks
Business Process Re-engineering (BPR)
Continuous Improvement
Lean
Six Sigma
Theory of Constraints
Total Quality Management
Techniques
Critical To Quality (CTQ)
Cost Analysis
Define, Measure, Analyze, Design, Verify (DMADV)
Define, Measure, Analyze, Improve, Control (DMAIC)
Failure Mode and Effect Analysis
Suppliers, Inputs, Process, Outputs, Customers (SIPOC)
Value Stream Analysis
Value Added Analysis
5 Ws (Who, What, Where, When, Why)
12. BPM Change Targets & Roles
Process Operators
Process Owner
Implementation Team
Project Manager
Customers
Regulators
Management
Process Architect
Process Analyst/Designer
Process Modeller
13. BPM Case Study
Quote to Cash Process
•Acquisition volume created disparate processes
across the sales and accounting teams
•Multiple applications used to facilitate the process
•Manual tasks
•Physical paper/file handling
•Error volume
•Approval process
•Pricing process
•Commission process
•Month end order volume
•Billing and invoicing process
•4 Process Owners reporting to 1 Process Sponsor
Process Operators
Process Owner
Implementation Team
Project Manager
Customers
Regulators
Management
Process Architect
Process Analyst/Designer
Process Modeller
16. BPM Process Flow
Tips for Better Process Flowcharts
• Flow data from left to right, top to bottom
• Use consistent design elements
• Keep everything on one page
• Avoid crossing process lines
• Replicate shared business processes, don’t re-draw
• Specify the level and version of each process flowchart
20. BPM Measures – Defect Causes
Fishbone Diagram
•Head is the defect or effect in question
•Main bones represent general causes
•Smaller bones represent detail to support each
main cause
22. BPM Value Stream Map
Activity Types
• Value-added – something someone is willing to pay for
• Business Value-added – something the business requires to meet regulatory or audit demands
• Non Value-added – unwillingness to pay, can be avoided
Calculations
• Lead time – latency between the initiation and execution of a process
• Process time – how much time it takes for a process step to complete
• First Pass Yield – represents the percentage of work that was free of defects
• Rolled Throughput Yield – represents the percentage of work that was free of defects at the end of
the process
23. BPM Improve & Control
Improve
•Reduce waste – reduce errors/defects by X%
by TBD
•Improve flow – reduce lead time by X% by TBD
•Simplify and standardize
•Rolled Throughput Yield – from X% to Y% by
TBD
Control & Monitor
• Critical to Customer (CCR) Metrics
• Visual End to End Process Metrics
