Leveraging Process Frameworks

to Simplify Process
Management

Je Varney
Business Excellence Prac3ce Lead
APQC
Objectives
Many people inherently sense the value of a
process framework but struggle to realize the
benet within their organiza3ons

In this presenta3on we will discuss
Key principles that make frameworks eec3ve
Overcoming barriers to end-to-end process
management
Aligning to what leaders care about
Accelera3ng your journey to higher process-
based performance

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What is a Process Framework?

A process framework is a list of business processes that are:

mutually exclusive,
collec:vely exhaus:ve, and
hierarchically decomposed

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Process Classification Frameworks
at APQC

Industry Versions
Aerospace & Defense
Automo3ve
Banking
Broadcas3ng
Consumer Electronics
Consumer Products
Educa3on
Electric U3li3es
Health Insurance Payer
Petroleum Downstream
Petroleum Upstream
Pharmaceu3cal
Retail
Telecommunica3ons

Best prac:ce organiza:ons blend and tailor these to best represent their businesses

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A Look Inside the PCF

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Frameworks are Fundamental

Organize your structure for process

informa3on on the front end!
If you dont
n Process informa3on will eventually be built in
pieces by dozens of people and projects.

n You will struggle to integrate process

informa3on across your
organiza3on.

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Primary Uses of Frameworks

Accelerate Governance Manage Content

Iden3fy Process Owners List of all processes
Structure

Align to Strategy
Evaluate poten3al
for improvement Manage Content
Reusable Processes
Benchmarking Cross-Func3onal Processes
What to measure
Aggregate/Drill-down

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Focus Deployment for Value
Strategic alignment of processes
n High-value ini3a3ve
n High-value products
n Processes requiring high integrity
(i.e. where mistakes are costly)

Size of the crowd around any one process

n Number of individuals/teams/processes
using a specic part of the framework

Business value is ul3mate purpose of framework

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Deployment Approaches
Reorganize
ALIGN organiza3onal elements to framework
n Costly and dicultseldom successful approach
n Organized around func3ons in the process framework
n Similar to reengineering approach
(Excep9on mergers or dives9tures)
At most disrup3verestructures the organiza3on
chart to match process framework
At least disrup3vechanges the organiza3on chart
to resolve gaps or overlaps

Overlay
MAP exis3ng structures to framework
n Fasterless opposi9on

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Cross-Functional Processes Exist

... but when they are not managed

n Processes are ad-hoc and inconsistent
n Management is unmonitored and
uncontrolled
n Management is using poor or
inappropriate measurements if
measuring at all
n Process workers have limle insight into
upstream and downstream impacts

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Defining Cross-Functional Processes
Best prac3ce organiza3ons leverage frameworks to
dene cross-func3onal ow
Refer to consistently dened and commonly used
building blocks
n Deni3on is based upon specic elements
of process framework
n Contextual reference is valuable to iden3fy
process gaps and overlaps
Iden3fy each sub-process
n Consistent documenta3on
n Accurate deni3on

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Crucial Cross-Functional Processes Can
Often Require Multiple Handoffs
1.0 2.0 3.0 4.0 5.0
Develop Develop & Market and Deliver Manage
Vision and Manage Sell Products Customer
Strategy Products Products & Services Service
& Services & Services

Build


New







6.0 Develop & Manage Facility

Human Capital
7.0 Manage Informa:on

Technology
8.0 Manage Financial
Resources

9.0 Acquire, Construct,
and Manage Property

10.0 Manage Environmental
Health and Safety (EHS)
11.0 Manage External
Rela:onships

12.0 Manage Knowledge,
Improvement, Change
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Cross-Functional Process Strategies

Thousands of cross-func3onal processes

exist in typical organiza3on
n Focus on cri3cal few
n Iden3fy owner early
n Orchestrate components
n Iden3fy rst, improve later
n Go only as far as you need to go
make sure what you are doing is valuable

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Cross-Functional Process Governance

Each iden3ed cross-func3onal process

must have an owner
n May not perform the process themselves
n Accountable for process results, integrity,
and improvement
n Open a func3onal or product manager
n Open one of many that rely
on the process
Act as a focal point for
the process
Coordinate and collaborate
to gain buy-in
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Real World Cross-Functional Example:
Order-to-Cash

Take Fulll Shipping & Invoicing,

Orders Orders Logis:cs Payment &
Receipt
Assump3ons
n Marke3ng is complete
n Organiza3on is build to stock rather than build to
order
n Oer terms of Net 30
n Products are in stock
n No customer order inquiries
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Example:
OTC High-Level
Which process
categories are
involved?

3.0 Market and Sell

Products and Services

4.0 Deliver Products

and Services

8.0 Manage Financial

Resources

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Example:
3.0 Market& Sell Products/Services
(Take Orders & Check Availability)

Take Order

Check Availability

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Example:
4.0 Deliver Products/Services
(Fulfill Orders, Shipping & Logistics)

Pick, Pack & Ship

Deliver

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Example:
8.0 Manage Financial Resources
(Invoicing, Payment & Receipt)

Check Credit
(part of sale?)

Invoicing

Payment & Receipt

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Analyze How Pieces Fit Together

ORDER TO CASH
3.5 Develop and 4.5 Manage Logis:cs

Manage Sales Plans and Warehousing

4.5.3 4.5.4
3.5.4
Orders Operate Operate Outbound
Manage Sales Warehousing
Transporta:on





8.2 P erform
Revenue Accoun:ng
8.2.1
8.2.2 8.2.3
Process Customer
Invoice Process Accounts
Credit

Customer Receivable

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Example of Cross-Functional Process

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Benefits Take Effort to Realize

Benets may be elusive if you dont

monitor and control
n Establish performance targets
n Support roll-out and transi3on
n Measure and evaluate eec3veness
n Communicate and collaborate with all players
Uncoordinated changes may
break con3nuity

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Summary
Key principles that make frameworks eec3ve
n What, not how

Overcoming barriers to end-to-end process management

n Ownership of both framework elements and cross-func3onal
processes
n Focus on cri3cal few

Aligning to what leaders care about

n Evaluate elements in framework for impact
n Priori3ze, select and manage improvements

Accelera3ng your journey to

higher process-based
performance

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Houston Texas 77024-7797

1-713-681-4020
1-800-776-9676

www.APQC.org

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