BA Perspectives - BPM
ECBA Series #004
Business Process Management is a management discipline and a set of technologies that focuses on how the organization performs work, view of value delivery of the organization and views of the organization through a process-centric lens.
A BPM initiative delivers value by implementing the improvement in the way work is performed in an organization. BPM is an ongoing effort and an integral part of the ongoing management and the operation of the organization.
The BPM Lifecycle generally includes the following activities:
Designing involves the identification of processes of the current state or as-is and the future state or to-be state modeling is a graphical representation of as-is and to-be processes, performs what-if analysis and compares the various simulations or process options to determine the optimal improvements and the potential value.
Executing and monitoring involves the data collected as a result of the actual business process. Flow and recommending alternatives for design improvements. Periodically monitor the process against established metrics such as SLS or defect rates.
Optimizing includes iterating previous phases for continuous improvement.
Business Process Re-engineering
Major process re-design across the enterprises
Overall objectives of the process
Individual changes at sub-process level in line with process goals
Methods used when processes are undefined
When the documented version is different from actual process in use
Comparison of the organization's processes and performance metrics to the industry best practices
Specialized BPMS Applications
Designed to support BPM initiatives and execute the process models directly
Process Improvement Approaches
Orchestrated by Senior Management
Spanning end-to-end processes
Tactical approaches to improve the individual processes or sub-processes
People-centric: Change is related to the activities and workflows in an organization
IT-centric: Initiatives are focused on process automation
Business Analysis Work
Processes are generally supported by IT systems. Development of IT systems are not covered under BPM.
BPM initiatives have senior management support.
BPM system requires a tight integration with organizational strategy.
BPM initiatives are cross functional.
BPM initiatives are end-to-end processes in the organization.
Focus on value and outcomes
BA practices applied to BPM initiatives
Initiate and manage process improvements
Position of a Business Analyst
Modeling, analyzing, deploying, monitoring, and continuously improving business processes
Developing and maintaining standards and repository of reference models for products, services, business processes, Key Performance Indicators (KPIs) and Critical Success Factors (CSF)
Process Analyst or Designer
Documenting process design along with performance trends
Performing analysis and assessment of As-is process, evaluating process design options, and making recommendations for change
Capturing As-Is and To-Be processes
Documenting a process for implementation
Define Measure Analyze Improve Control (DMAIC)
Failure Mode and Effect Analysis (FMEA)
House of Quality / Voice of Consumers (VOC)
Needs to challenge the status quo, understand the root cause of a problem and encourage SMEs to consider new ideas and approaches
Understand and articulates internal and external views of the processes under analysis
A neutral and independent facilitator of the change and frequently involved in negotiation, conflict resolution between individuals with different opinions
Needs to communicate across organizational boundaries as well as outside the organization
Let us assume that you are the owner of a small business which has one or two these BPM Drivers:
Cost reduction initiatives
Increase in quality
Increase in productivity
Core system implementation
Post merger and acquisition rationalization
Standardization of initiatives
Establishment of BPM Center of Excellence
As a business analyst and also a business owner, you find yourself very motivated. You will work to decide if there is a problem / process to start working on, then identify what the overall goals that you and your business want to achieve. For that to happen, you can create a macro map of core processes and support processes, then you build the charter with improvement targets in mind.
So now, you help the team see the process end to end and clarify each person's role and contribution to the outcome of the process. This means a stronger solution will be identified and one that the team and sponsor are motivated to implement.