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The Art of Sustained Process Improvement
- A Practical Guide -
implementation. analysis functionality. This paper describes a typical business process transformation project. a variety of proven methods (ARIS Value Engineering1) and ARIS Platform products are available. for continuous process cost management and resource planning).Standard ARIS reports and analysis tools you should use to ensure the desired results as the project progresses.com 2 . Contact: arisproductmarketing@ids-scheer. and communication options they provide as standard are sufficient to achieve many of the objectives associated with a business process transformation project.g. This paper looks at “only” two ARIS Platform products in detail: ARIS Business Architect ARIS Business Publisher The powerful methods. Find out: How can you deploy packaged ARIS products. such as ARIS Business Architect. and ARIS Business Simulator (e. and analysis tools offered by ARIS Business Architect and ARIS Business Publisher that enable companies to achieve their objectives in the individual phases? 1 Introduction Depending on the task in hand and its complexity. About the author: Britta Hilt Senior manager. This ensures they remain fully aligned with customer requirements. Comparison with target processes helps to identify improvement potential and boost corporate performance long term. design.g.. such as ARIS Business Optimizer (e. thereby facilitating sustained process improvement.ARIS Expert Paper The Art of Sustained Process Improvement – A Practical Guide In recent years.Standard ARIS methods . you will learn which . 1 ARIS Value Engineering and the Business Process Transformation scenario combine the experience of countless national and international process transformation projects covering a range of industry sectors. where the aim is to systematically align processes with strategic corporate objectives. to consistently achieve your various corporate objectives? How do organizations go about transforming their business processes? What are the standard methods. for dynamic time analysis and monitoring of end-to-end process cycle times in the context of service level agreements). reports.. reports. ARIS supports Business Process Management (BPM) in its entirety – from strategy definition and process design through to implementation and monitoring of the executed processes. business process modeling has emerged as a proven tool for transparent documentation of process flows and identifying weaknesses. ARIS Six Sigma (for more efficient implementation of your Six Sigma projects). She advised leading multinational companies on managing business processes with ARIS for many years. Any outstanding areas can be covered by deploying the ARIS Platform product that suits your specific need. and controlling). In the course of the four phases (strategy. joined IDS Scheer in 1995. The insights she gained provide valuable input for the ongoing development of packaged ARIS products.
ARIS Expert Paper 2 2. processes. To transform your company. but flexibly adapt it to your corporate reality.1 Business Process Transformation or: How Complex Is the World? The roadmap phases Business process transformation is a project-based method for business process analysis and optimization. Design phase: This phase is about shining a light on the current situation and deriving your desired reality in the form of target processes. depending on your objective and the complexity of your application scenario. 1: Business Process Transformation – Roadmap 3 . Implementation phase: The results of the design phase are turned into reality here as you transform your organizational structure. This allows you to follow a proven method. while others will be optional. However. Creating a process-oriented enterprise that incorporates a BPM governance model is vital here to ensure sustained success. you will execute the four roadmap phases displayed here. Strategy phase: In this phase. your IT environment. this phase reveals whether your defined objectives are being achieved in the long term. enabling corrective action to be taken if needed. Controlling phase: As the logical consequence of every process transformation project. Fig. you assess the market and compare your products and services with market requirements to define objectives and identify strategic processes. and. whether simple or complex. if necessary. certain work packages within the phases will always be implemented.
This makes it all the more important that standards are both available. The subsequent execution of the four roadmap phases at the local level thus leads to differences between the original reference model and the country-specific processes. 2: Global and local process design Next.2 How complex is your enterprise? Depending on individual circumstances. the above roadmap may be executed multiple times. the business process transformation roadmap is executed at the central level (corporate divisions) and a global process template is created. It is vital that this flexibility is possible. 3 Information Technology Infrastructure Library (reference model for the implementation and operation of IT service management systems) 4 Supply Chain Operations Reference Model (reference model for supply chain design and analysis) 4 . If several countries modify the same part of the reference processes. It is also possible to use other sources. it is likely that the reference structures have not been optimally tailored to market needs. regional legislation may also necessitate process variants. improved version of the global reference model for distribution to the various locations. 2 Country-specific strategies.ARIS Expert Paper 2. Rather. To start with. This global template includes documentation of all relevant target processes to be supported by SAP and a preconfiguration of the SAP system. and market factors may vary from the global standard. despite the desire for standardization2. from Sydney to New York. The project used here as an example involves the rollout of a uniform software system (for example SAP) across a company to standardize processes and the IT environment. These improvements are then reviewed critically by all regions and either accepted or rejected. with the reference processes being adapted to country-specific circumstances. the regions are provided with the reference models and preconfigurations. rather than just once. it is implemented by each country/region. the above roadmap cannot be applied just once. objectives. such as industry-specific reference models or horizontal reference models like ITIL3 and EasySCOR4. Such a project is naturally not restricted to a particular country – processes need to be the same throughout the enterprise. to create best-practice process models (either centralized reference models or local adaptations) based on existing knowledge. Here. resulting in a new. and complied with. which obviously leads to greater complexity. Fig. The regional process adaptations are therefore consolidated and evaluated at the global level.
Your products5 may be weighted differently in different markets. they must be viewed holistically at this stage.ARIS Expert Paper 3 3. It is now a simple matter to identify the processes that are key to achieving your aims. i.e.1 How can you analyze your markets? The tool used for detailed market analysis is the business segment matrix. i. Instead of viewing processes solely in terms of individual functional areas. by analyzing your products and services and aligning them with current or anticipated market conditions.1 Standard Methods in the Strategy Phase Procedure In the strategy phase. 5 . which enables you to compare and evaluate your products in the context of the corresponding markets.2..2 Standard report and analysis tools Fig. It is important here that you define critical success factors. of course.e.. 3. The next step is a critical market analysis designed to identify how far your company is from achieving its desired objectives and where it stands compared to the competition. from end to end. so that you can work towards your objectives in a targeted manner. both now and in the future? Fig. 4: Business segment matrix 5 The word “product” can also refer to a service. reliable answers to the following questions: Where does my organization stand today? Where does it need to be tomorrow? Which members of my organization are key to achieving its objectives? Which products must my organization offer? Which markets should be prioritized? Which products are relevant for the defined markets. you begin to develop an overview of your business environment. This is crucial in order to properly identify the process areas that matter most. 3: Strategy phase 3. This will provide fast.
Reference models are even more important in the design phase. To do so. This tool gives you a fast overview of your company’s goal achievement and highlights critical areas. you can use tools. Having defined the process map. The analysis answers questions. These models contain predefined process content. management. which you can select according to certain criteria. Fig. You can either start creating your process map from scratch or adopt a much faster and simpler approach by leveraging an industry-specific reference model. which analyzes each process in graphical form in terms of its performance and the extent to which it meets relevant success factors. because they deliver detailed process knowledge “on a plate” that you can then adapt to your organization’s requirements (see 4. so good – but to what extent are these processes embedded in your organization? The answer is provided by a process map covering the entire company.ARIS Expert Paper ARIS provides a variety of analysis options to transparently evaluate your business segments. and support processes. such as the following: How is the company performing in its critical business segments? How is your strongest competitor performing? Will you still be competitive in the future? The current situation is clearly revealed for each relevant business segment.1).2 How can you design your process map? A process map provides a bird’s eye view of your organization’s core processes. enabling the key processes to be defined so that they are consistent with market conditions and strategic objectives.2. 5: Main critical factors analysis 3. 6: Process assessment 6 . So far.2. you now need to evaluate the processes that are key to your goal achievement. which highlights your core. including key success factor analysis. The resulting graphical summary displays and assesses the relevant key success factors for each business segment. Fig. The result is your own enterprise model that draws on industryspecific best practices. such as the standard process evaluation. though. It is the first step toward examining the relevant individual processes that need to be analyzed in order to achieve the defined objectives.
etc. you can transfer the organizational structure from your HR system into the ARIS repository via a predefined Excel table. such as organizational charts.2. While you have the option of defining master data from scratch very flexibly in ARIS. IT environments. IT. 7: IT system assessment 7 .ARIS Expert Paper 3. you can evaluate your IT environment and thus visualize it in terms of critical factors and the investment required. for example. e. data. product portfolio. HR systems. and make them available for modeling. and risk. Fig.g. this information is often already available in existing company sources. The same IT system is required for sales and production processes. The term “master data” is often used here because this information is common to multiple processes. As well analyzing processes.3 How can you efficiently define your master data? A process is not just a workflow – it also has other aspects.. Transferring master data in this way allows you to automatically create all the required elements. Example: The role of “sales assistent” is involved in both the quotation process and the order process. By simply importing this data.. such as organizational structures.
Fig.ARIS Expert Paper 4 4.2. To come up with the suggested improvements that will form the basis of the target processes. This chart is an excellent way of providing employees with a clear overview of individual responsibilities. this step can involve a greater or lesser degree of detail.2 Standard reports and analysis tools 4. How will your organizational structure change? One option consists of evaluating your process map using a RASCI chart6. These sources provide detailed process models.1 Standard Methods in the Design Phase Procedure Having identified the critical processes in the strategy phase. Using these reference models can significantly reduce the time needed for process design and simultaneously improve process quality. Fig. 4.2. you now need to zoom in and define your target processes. 8: Design phase The process flow is described in intuitive fashion across multiple levels in a way that enables easy navigation. the current situation needs to be analyzed both dynamically and statically. Depending on the project objective. which include typical required data input or generated data output indicators relevant to the individual process steps to facilitate performance measurement. it is a simple matter to analyze your processes for weaknesses and identify the necessary improvements.2 Which analysis options are available to support process design? ARIS offers a range of standard analysis tools to facilitate work in the design phase. This step is thus all about designing your target processes. you can either start from scratch or leverage accumulated process expertise by drawing on industry-specific or horizontal reference models. 4. 9: Responsibility matrix (RASCI Chart) 6 RASCI stands for Responsible / Accountable / Supportive / Consulted / Informed 8 . Selected standard reports and analysis tools for this phase are described below. A RASCI chart is a responsibility matrix that evaluates all the (old and new) processes and provides information on who is involved in what capacity what activity they are performing whether their involvement is active or passive. Thanks to the process transparency now achieved. enabling changes to be made quickly and efficiently.1 How can you define your processes? As in the strategy phase.
such as the duration of a process step. You can analyze a single process or multiple processes. Fig. These ad hoc reports enable you to assemble all the content you want to export to Word or Excel with just a few mouse clicks. aided by a wizard. making it possible to quickly identify process steps that are particularly costly or time-consuming (in terms of processing time or unnecessarily long wait times).ARIS Expert Paper On which design are your processes based on? Another option is flexible evaluation using different aspects. Specific data is maintained for this purpose. you can quickly and easily create custom report scripts without the need for programming skills. This gives you powerful options for creating a view of your processes that meets your specific requirements. targeted process analysis reports and result presentations. such as which IT systems are used in which processes which data is needed as input or output in which processes which risks are “hidden” within which processes. 9 . Available as a standard analysis tool. 11: Ad hoc reporting How expensive are your processes. and how long do they take? Process optimization is often about achieving time and cost savings compared to current processes. Fig. time/cost analysis functionality compares potential target process improvements with the actual time and cost of existing processes. You can thus produce individual. This report provides information. 10: Process-oriented IT evaluation How can you customize the evaluations to suit your target groups? In addition to standard reports.
e. Fig. This results in unnecessary wait times and means that the relevant users constantly need to respond and react. or data consistency. there are no inefficient organizational transitions) data is processed in a continuous flow (i. This simple analysis identifies critical gaps in IT support. e. 12: Structural process comparison How can you flexibly analyze process-relevant factors? Flexible classification analysis makes it possible to classify all process content according to your own criteria.. 13: Flexible process analysis You can identify. For example.. there are no inefficient media transitions). there are no inefficient IT transitions) the process is embedded in your organizational structure without any “frictional” losses (i.g. organizational responsibility.g.e.. for example whether your target process has delivered the planned improvements over the as-is process which process variants have performed better in terms of goal achievement (e. The analysis results are particularly useful if you compare the actual process with the target process. it also takes into account IT systems How many piloted systems are being used? How many systems will be shut down in the near future? Risks What is the rate of high-probability risks compared to low-probability risks? 10 . you can quickly establish whether your process steps add value or not. If you discover that a process has multiple organizational transition points. Fig. achieving loan process targets in the private customer segment compared to performance in the business customer segment).e.ARIS Expert Paper How streamlined are your processes? Structural analysis is a further option and enables you to ascertain whether your IT systems support the entire process smoothly (i. or identify the level of automation in your processes.. a number of employees will be involved in its execution.. This analysis covers every aspect. The resulting parameters can be used as the basis for comparisons.
How can you involve everyone in the change process? To be successful.ARIS Expert Paper What can you achieve by getting a different view of your processes? Changing your viewpoint can often provide insights into weaknesses and scope for improvement. as opposed to a display that focuses only on processes. and how. 14: Dynamic views A valuable alternate view for IT staff is one that shows which IT systems support which process steps. enabling them to quickly identify whose job it is to implement the improvement options. for example. Weakness reports provide users with point-and-click functionality to list all your suggested improvements for the process in the relevant context. 11 . which are all supported by ARIS. Each of these roles has its own areas of responsibility and separate requirements. The weaknesses are then prioritized and assigned to the relevant staff members. change management must ensure that the agreed changes are actually implemented. Because the columns represent departments or IT systems. This has an impact on various roles. you can easily identify the departments / IT systems involved in the process and whether the process involves many pairs of hands or is executed by just a few departments. Although each subprocess may be logical and correct. as well as the improvement potential. Generate a column-based flow display from a process flow. Task lists can be created at the push of a button for these employees. These roles include people who make the suggested improvements are responsible for implementing them execute the defined tasks. insights into any inconsistencies only emerge when the complete process has been generated in an endto-end view. They reveal the processes and activities in which weaknesses have been identified. Fig. With the help of standard functions. you can analyze processes from different angles.
After all. It sounds easy enough in theory – but the human element should not be underestimated! ARIS offers a variety of valuable options here. Using a BPM governance model. but they also need a description of the new processes tailored to their specific situation. the results of the design phase) into practice. You can also use this graphical comparison to help define training requirements. In addition. 15: Implementation phase 5.ARIS Expert Paper 5 5. A version comparison makes it easy for staff to understand what is new about the target process. you need to establish a process-oriented enterprise. a model is versioned and compared as soon as it has been completed and approved. 16: Job description Pinpointing the differences between old and new processes is another important way of supporting change in the organization. process changes often impact a company’s organizational structure and IT systems. Fig. which entails continuous critical assessment of your processes.2 How can you make process changeover easier for your staff? Employees may need the overall context to better understand the rationale behind changes.e. To ensure sustained success.1 Standard Methods in the Implementation Phase Procedure The implementation phase is all about converting theory (i. Fig. for example. even the best-designed process is of no use if it is left to gather dust and people continue to work as before. Fig. One option is to create job descriptions for all relevant processes and roles. you can embed the process management concept throughout the organization. 17: Version comparison between as-is and to-be process 12 . These reports can be provided for all employees in the form of a Word document.. To make this possible. and take ownership of them. So how can you ensure that your improved process design has the desired effect? The process participants must be informed about the changes.
Fig.. The desired process improvement can only be considered a success if its associated objectives have also been achieved. Every employee can home in on the processes relevant to them and use dynamic views to display only the data they need. The graphic below shows the newly designed target process on the left-hand side the target process as it actually executes on the right-hand side. Fig. reality tends to be much more complex than anticipated. 19: Controlling phase It is immediately apparent from the multiple loops that the newly designed target process is taking a circuitous route to reach its objective. 18: Target-group specific publishing 6 6. it is necessary to establish how the operational processes are actually being executed in your company. the executed business processes have not only been effectively and efficiently designed and implemented. and implementation phases have been completed.1 Controlling Procedure Once the strategy. design. practical deployment reveals that defined processes do not run smoothly the way they were designed. i. To measure this success. Fig. but they remain effective and efficient. All too often. you can use a sampling approach or ongoing critical assessment of goal achievement.e.ARIS Expert Paper A key tool in the transition from theory to practice is publishing and target group-specific representation in ARIS Business Publisher. 20: Designed process versus executed process 13 . Questions that need to be answered include: Were your strategic objectives properly implemented? Did the transactions defined during process design yield the desired benefits? This check is essential to make sure that your project objectives are achieved. Unfortunately.
Color coding ensures instant identification of weaknesses. and KPI documentation. you can ask the process participants whether performance has improved. you need to avoid manual surveys as far as possible ensure that all relevant measurement results are clearly presented by an IT system.2 How can you evaluate your processes using sampling? Random sampling involves monitoring performance improvement at a specific point in time. cost. This guarantees a high level of process quality. enabling you to take the appropriate action and respond rapidly to potential problems. 14 . You can thus continuously monitor process performance (quantity. time. and quality). you can quickly and easily pinpoint the cause-and-effect chains that impact on performance. and how.3 How can you comprehensively and continuously evaluate goal achievement? The above procedure is not efficient in terms of monitoring success on an ongoing basis. the processes are compared with their target values and analyzed. Using actual data. ARIS Process Performance Manager performs precisely this task by recording and displaying business processes automatically. process traffic lights. If errors or exceptions occur. You can also use indicators captured automatically by the various IT systems. Your process participants benefit from interactive value chains. For effective continuous measurement. results are not always meaningful. A dashboard that provides a management view of your processes enables you to keep tabs on current performance in critical areas. 21: Continuous process analysis and benchmarking Fig. An efficient early-warning system for critical performance indicators guarantees control and transparency of your process performance at all times. If conducting a manual evaluation. because a process is often supported by multiple IT systems and each system can only provide its own indicators. thereby ensuring continuous measurement of your process performance. Fig. 22: Management view on process performance With ARIS Process Performance Manager. regardless of whether your enterprise uses one or several IT systems to implement your process from end to end. trend information. ARIS PPM enables intuitive ad hoc analysis for process improvement and identifies behavioral patterns in organizational structures.ARIS Expert Paper 6. the relevant person is immediately informed so that corrective action can be taken and the error eliminated. such as the time taken from receiving a call on the hotline to providing a final answer. 6. ARIS Performance Dashboard thus enables central integration and target group-specific display of the relevant processes. which is measured in real time via the process-supporting IT systems. However.
2.2 Analysis Weakness report 4.ARIS Expert Paper Here you can find the described example reports: Folder of Evaluation Script BPM Name in Text Key success factor analysis Process assessment Transferring master data IT system assessment Responsibility matrix (RASCI Chart) Chapter Report Name Location of evaluated model 3.Creating scripts.2 Default Ad hoc reporting 4. Processes / Process Analyze application architecture / Core processes / Marketing & Sales (as-is processes) / Sales process / Sales order systems processing Analyze classification Processes / Process architecture / Core processes / Marketing & Sales (As Is processes) / sales order management (as is) / sales order processing / sales order processing (as is) [EPC] Processes / Process architecture / Core processes / Marketing & Sales (As Is processes) / sales order management (as is) / quotation processing / quotation processing (as is) [EPC] Processes / Process architecture / Core processes / Marketing & Sales (As Is processes) Processes / Process architecture / Core processes / Marketing & Sales (As Is processes) / sales order management (as is) / quotation processing / quotation processing (as is) [EPC] United Motors Group / 2.1 Strategy / Objectives / business segments UMG Main critical factor Automotive by markets [Business segment analysis matrix] Evaluate Process Processes / process architecture / enterprise process map (Value-added chain diagram) 3.2 Generate position description Default Task list 4. Processes / Process architecture / Core processes / Marketing & Sales (as-is processes) / Sales process / Sales order processing Time and cost analysis 4.2.2 Generate position description Default Version comparison between as-is and to-be process 4.2. United Motors Group / 2.2.1+ The UMG (UNITED MOTORS GROUP) is the virtual demo company of IDS Scheer AG 15 .2 United Motors Group / 2.2.2. System evaluation United Motors Group / 4. chapter Help Topcis . Processes / Process architecture / Core processes / Marketing & Sales (as-is processes) / Sales process / Sales order processing Default Process-oriented IT evaluation 4.3 You can create a template (Folder: Evaluate – Report – Create template for data import). Please refer to online help.2 Analyze times / costs Analysis Structural process analysis and comparison 4.2. Processes / Process architecture / Core processes / Marketing & Sales (As Is processes) / Sales process / contract negotiation & conclusion / contract negotiation & conclusion (as is) [EPC] Analysis Flexible process analysis 4.2 BPM 3. Processes / Process architecture / Core processes / Marketing & Sales Export RASCI Chart (as-is processes) / Sales process / Sales order processing [EPC] Output model information considering various aspects United Motors Group / 2.2.2 Right mouse click on model -- All examples are included in UMG demo database of ARIS 7.2 ARIS Business Architect (module Administration) offers you to create ad hoc report scripts.3 IT Architecture 4.2.2 United Motors Group / 220.127.116.11.2. IT Systems / Systems / 01 System Inventory / IT Systems (domains) [Application system type diagram] 3.2 task list Change management Job description 4.2. add all relevant information in this Excel sheet and import it again (Folder: Evaluate – Report – Import data in Excel format).
ARIS Expert Paper ARIS Platform Expert Paper IDS Scheer AG Headquarters Altenkesseler Str. additions or amendments require prior written consent from IDS Scheer AG. “PPM”. Walldorf. The contents of this document are subject to copyright. ID-Number: EP-EBPM-1008-E www. “ProcessWorld”. “IDS” .ids-scheer. “SAP NetWeaver” is a trademark of SAP AG. Reproduction in any form is only permitted on the condition that the copyright notice remains on the actual document.com © Copyright IDS Scheer AG. modifications. All other trademarks are the property of their respective owners. Saarbruecken. 2007. “ARIS”. 17 66115 Saarbruecken Phone: +49 681 210-0 Fax: +49 681 210-1000 E-mail: info@ids-scheer. ARIS with Platform symbol and Y symbol are trademarks or registered trademarks of IDS Scheer AG in Germany and in many other countries worldwide. Any changes. All rights reserved. Saarbruecken.com . Saarbruecken. Publication or translation in any form requires prior written consent from IDS Scheer AG.