top of page

The Business Process Management Perspective

Business Process Management Perspective

Overview

  • BPM focuses on improving business processes to deliver value.

  • It integrates management discipline with enabling technologies.


Key Characteristics of BPM

  • Value Delivery: Focuses on delivering value across functional areas to customers and stakeholders.

  • Organizational Scope: Aims for a holistic view of value delivery spanning the entire organization.

  • Process-Centric Lens: Views the organization's operations primarily through its processes.

Value Delivery Through BPM

  • Implements improvements in how work is performed within an organization.

  • Enhances efficiency and effectiveness in delivering products or services.

Role of BPM in Organizations

  • Process Governance: Determines creation, modification, cancellation, and governance of manual and automated processes.

  • Ongoing Effort: BPM is integral to ongoing management and operational practices of the organization.


Change Scope

Scope of BPM

  • Business analysts may focus on single processes or entire organizational processes.

  • Aim to improve processes to meet organizational objectives.

BPM Life Cycle Activities

  • Designing:

    • Identifying and defining current (as-is) and future (to-be) states of processes.

    • Specifies stakeholder expectations and business operation models.

  • Modelling:

    • Graphical representation of processes.

    • Provides input for requirements, solution design, and value analysis.

  • Execution and Monitoring:

    • Tracks actual process execution for data-driven insights.

    • Objective data aids in analyzing value and suggesting improvements.

  • Optimizing:

    • Continuous improvement based on execution data.

    • Refines models and designs to eliminate inefficiencies and enhance value.


Breadth of Change

  • Seeks end-to-end optimization across organizational processes.

  • Enhances process-centricity and adaptability to customer needs.


Depth of Change

  • Utilizes BPM frameworks for detailed process analysis.

  • Decomposes processes into sub-processes for thorough optimization.

Value and Solutions Delivered

  • BPM aims to improve operational performance and reduce costs and risks.

  • Enhances transparency into processes, aiding decision-making.


Delivery Approach

  • Ranges from tactical methods for individual processes to holistic management disciplines.

  • Focuses on transforming processes to deliver stakeholder value.


Major Assumptions

  • Processes are supported by IT systems; system development not always covered by BPM.

  • Requires senior management support aligned with organizational strategy.

  • Cross-functional and end-to-end in organizational scope.

This structured summary outlines the various aspects of BPM, emphasizing its comprehensive approach to enhancing organizational processes and achieving strategic objectives.


Business Analysis Scope

Change Sponsor

  • BPM initiatives driven by executives aligning strategic objectives with supporting business processes.

  • External triggers often initiate BPM initiatives, necessitating business case development.

Change Targets

  • Customer:

    • External and internal stakeholders involved to validate process effectiveness.

    • Early customer involvement minimizes risks and aligns process goals.

  • Regulator:

    • Influences BPM initiatives with evolving compliance requirements.

    • Ensures adherence to regulations like public safety and transparency.

  • Process Owner:

    • Responsible for decisions on process changes and performance measurement.

    • Key stakeholder ensuring process alignment with organizational goals.

  • Process Participants:

    • Directly or indirectly engaged stakeholders defining process activities.

    • Engagement during process design ensures participant interests are met.

  • Project Manager:

    • Leads BPM initiatives, accountable for delivery and decision-making.

    • Manages planning, scheduling, communication, change, and risk.

  • Implementation Team:

    • Executes BPM plans to operationalize processes.

    • Integrates functions to meet customer needs and initiative goals.


Business Analysis Position

  • Process Architect:

    • Designs, improves, and transforms business processes.

    • Responsible for standards, process models, and performance metrics.

  • Process Analyst/Designer:

    • Analyzes, optimizes, and recommends changes to processes.

    • Expert in process documentation and optimization frameworks.

  • Process Modeller:

    • Documents current (as-is) and future (to-be) processes.

    • Supports process implementation and IT integration.


Business Analysis Outcomes

  • Business Process Models:

    • Includes current state (as-is) and future state (to-be) models.

    • Guides process improvement and prioritizes changes.

  • Business Rules:

    • Guides business processes and controls business behavior.

    • Implemented through business rules analysis and automation.

  • Process Performance Measures:

    • Defines parameters for process improvement.

    • Measures process effectiveness, efficiency, and alignment with objectives.

  • Business Decisions:

    • Determines actions within business processes.

    • Automated through decision rules to optimize workflow.

  • Process Performance Assessment:

    • Monitors and evaluates process performance.

    • Provides data for continuous improvement and decision-making.

This concise summary highlights the roles, targets, and outcomes of business analysis within BPM, emphasizing its strategic alignment and focus on process optimization and stakeholder engagement.


Business Process Management: Frameworks, Methodologies, and Techniques

Frameworks

  • ACCORD

    • Methodological framework for mapping current state models and unstructured data to conceptual models.

  • Enhanced Telecommunications Operations Map (eTOM)

    • Hierarchical framework initially for telecom, now used in service-oriented industries.

  • Governments Strategic Reference Model (GSRM)

    • Life cycle framework providing generic government processes for organizational maturity stages.

  • Model based and Integrated Process Improvement (MIPI)

    • Cyclical framework: assess readiness, outline, detail data collection, form model, assess and redesign, implement, review.

Methodologies

  • Adaptive Case Management (ACM)

    • Flexible approach for dynamic processes with human interaction variability.

  • Business Process Reengineering (BPR)

    • Radical redesign of processes for major performance improvements.

  • Continuous Improvement (CI)

    • Ongoing adjustment of processes to meet performance goals, integral to organizational culture.

  • Lean

    • Methodology focusing on eliminating process waste to enhance efficiency.

  • Six Sigma

    • Methodology using statistical analysis to reduce process variation and improve quality.

  • Theory Of Constraints (TOC)

    • Focus on optimizing processes by managing key constraints affecting throughput, operational expense, and inventory.

  • Total Quality Management (TQM)

    • Philosophy emphasizing quality in processes to meet or exceed customer expectations.

Techniques

  • Cost Analysis

    • Detailed costing of activities to understand process expenses.

  • Critical to Quality (CTQ)

    • Diagrammatic alignment of process improvements with customer requirements.

  • Cycle-time Analysis

    • Examination of time taken by each activity in a process.

  • Define Measure Analyze Design Verify (DMADV)

    • Structured roadmap for new process development or improvement.

  • Define Measure Analyze Improve Control (DMAIC)

    • Data-driven approach to enhance existing processes.

  • Drum-Buffer-Rope (DBR)

    • Method to maximize system constraint output through buffer management.

  • Failure Mode and Effect Analysis (FMEA)

    • Systematic method for identifying and correcting process failures.

  • House of Quality/Voice of Customer

    • Matrix linking customer desires to organizational capabilities.

  • Inputs, Guide, Outputs, Enablers (IGOE)

    • Diagram detailing process context including inputs, outputs, guides, and tools.

  • Kaizen Event

    • Focused effort to rapidly improve specific activities or sub-processes.

  • Process Simulation

    • Model allowing assessment of process variations and performance estimates.

  • Suppliers Inputs Process Outputs Customers (SIPOC)

    • Table summarizing process inputs and outputs.

  • Theory of Constraints (TOC) Thinking Processes

    • Logical models to diagnose root causes and define future system states.

  • Value Added Analysis

    • Assessment of customer value added at each process step.

  • Value Stream Analysis

    • Evaluation of value contributed by each business area across processes.

  • Who What When Where Why (5Ws)

    • Set of foundational questions for information gathering.

This summary outlines key frameworks, methodologies, and techniques used in Business Process Management, providing a comprehensive overview for presentations or studies in the field.


Underlying Competencies for Business Analysts in BPM

Challenging the Status Quo

  • Root Cause Analysis

    • Ability to delve deep into issues to identify underlying causes.

  • Critical Thinking

    • Evaluate why processes are performed in specific ways to propose improvements.

Encouraging Innovation

  • Promoting New Ideas

    • Encourage subject matter experts to consider innovative approaches.

  • Efficiency Improvement

    • Aim to enhance process efficiency and effectiveness through innovative solutions.

Balancing Internal and External Views

  • Process Perspective

    • Understand and articulate both internal and external views of processes.

  • Integration Skills

    • Navigate between different perspectives to ensure comprehensive analysis.

Interaction and Negotiation Skills

  • Conflict Resolution

    • Mediate and resolve conflicts arising from differing opinions and organizational groups.

  • Negotiation

    • Facilitate agreements and consensus among stakeholders with diverse viewpoints.

Communication Across Organizational Boundaries

  • Cross-functional Communication

    • Communicate effectively across various organizational levels and departments.

  • External Communication

    • Engage with stakeholders outside the organization to gather insights and align objectives.

Facilitation of Organizational Change

  • Neutral Facilitation

    • Act as a neutral facilitator in driving and managing process changes.

  • Change Management

    • Support organizational adaptation to process improvements through effective facilitation.

This summary outlines essential competencies required for business analysts involved in Business Process Management initiatives, emphasizing their role in driving innovation, facilitating change, and fostering effective communication and collaboration across organizational boundaries.

Impact on Knowledge Areas in Business Process Management (BPM)

Business Analysis Planning and Monitoring

  • Progressive Elaboration

    • Continuous improvement activities necessitate iterative planning.

  • Focus Areas

    • Initial focus on analyzing and improving business processes before addressing technology.

  • BABOK® Guide Techniques

    • Estimation, Item Tracking, Process Modelling, Reviews, Stakeholder List/Map/Personas, Workshops.

  • Other Techniques

    • Inputs, Guide, Outputs, Enablers (IGOE).

Elicitation and Collaboration

  • Scope Definition

    • Define and understand scope of BPM initiatives and affected processes.

  • Techniques

    • Process Modelling, Stakeholder Analysis, Stakeholder Engagement.

  • BABOK® Guide Techniques

    • Brainstorming, Document Analysis, Focus Groups, Interviews, Process Modelling, Prototyping, Reviews, Stakeholder List/Map/Personas, Workshops.

  • Other Techniques

    • House of Quality/Voice of Customer.

Requirements Life Cycle Management

  • Value Delivery

    • Focus on delivering value across functional areas through process-centric approaches.

  • Impact on Requirements

    • Drives out business requirements impacting design, implementation, and post-implementation.

  • BABOK® Guide Techniques

    • Acceptance and Evaluation Criteria, Backlog Management, Brainstorming, Business Rules Analysis, Non-Functional Requirements Analysis, Prioritization, Process Analysis, Process Modelling, Prototyping, Scope Modelling, Workshops.

Strategy Analysis

  • Process Role in Enterprise

    • Analyze process impact within enterprise value chains.

  • Strategic Focus

    • Consideration of current and future state performance measures.

  • BABOK® Guide Techniques

    • Document Analysis, Functional Decomposition, Interviews, Lessons Learned, Process Analysis, Process Modelling.

  • Other Techniques

    • Drum-Buffer-Rope, House of Quality/Voice of Customer, Inputs, Guide, Outputs, Enablers (IGOE), TOC Thinking Processes.

Requirements Analysis and Design Definition

  • To-Be Process Definition

    • Define requirements architecture including process model, rules, information needs, and organizational structure.

  • Solution Options

    • Assess changes to IT, outsourcing, and similar solutions.

  • BABOK® Guide Techniques

    • Benchmarking and Market Analysis, Business Rules Analysis, Decision Modelling, Estimation, Functional Decomposition, Metrics and KPIs, Prioritization, Prototyping, Scope Modelling, Stakeholder List/Map/Personas, Workshops.

  • Other Techniques

    • Kaizen Event, Process Simulation.

Solution Evaluation

  • Continuous Evaluation

    • Repeated assessment of process performance and refinement.

  • Insight Generation

    • Understand impact and value of process improvements.

  • Techniques

    • Process Mining, Analysis of Solution Performance.

  • BABOK® Guide Techniques

    • Acceptance and Evaluation Criteria, Balanced Scorecard, Benchmarking and Market Analysis, Brainstorming, Business Capability Analysis, Business Rules Analysis, Decision Analysis, Document Analysis, Estimation, Interviews, Metrics and KPIs, Observation, Organizational Modelling, Process Modelling, Reviews, Risk Analysis and Management, Root Cause Analysis, Stakeholder List/Map/Personas, Survey or Questionnaire, SWOT Analysis.

  • Other Techniques

    • Kaizen Event, Failure Mode and Effect Analysis (FMEA), Process Simulation, Value Stream Analysis.

This summary highlights how specific business analysis practices within BPM align with and modify tasks defined by the BABOK® Guide across various knowledge areas, emphasizing techniques critical for successful BPM initiatives.


bottom of page