Business Process Management (BPM) 101

Training Workshop

Franco Pang
Introduction

• At the end of the training, participants will be able to:

– Understand what Business Process Management (BPM) is about

– Understand what APQC’s Process Classification Framework is and

how it is applied

– Model business processes by applying BPMN2.0 standard

– Use Sparx EA software to model business processes

– Facilitate a process mapping workshop independently and confidently

Agenda
1. Business Processes Management (BPM)

2. APQC’s Process Classification Framework (PCF)

3. Modelling Business Processes with BPMN2.0

4. Organising a Process Modelling Workshop

5. Modelling Business Processes Using Sparx EA

6. Q&As
Business Process Management (BPM)
What are Business Processes?

• Organised groups of related activities that create values to the customers

Process Flow
E.g.: Sort letters at distribution centres

Input Output
E.g.: Letters arrive E.g.: Letters as
at distribution sorted to
centres destinations
Business Process Management (BPM)
• Are these observations and experience familiar to you?

Why are process

maps in so many SOPs are so There is no
different formats? outdated process at all

Processes are Why are we

not documented doing this?
anywhere

I need to improve the

I talk to five persons process in my team but
about the same don’t know where to start
process and hear
five different stories
Business Process Management (BPM)
• Business Process Management is about:

– Defining business processes (understanding / visibility)

– Organising business processes (content management)

– Optimising business processes (maturity)

– Supporting programmes and projects (capability)

– Aligning business processes with business strategies (sustainability)

– Defining the right process modelling and improvement methods, tools

and standards (governance)

• What should we focus? Where is the priority?

Business Process Management (BPM)
Process Maturity
• A key goal of BPM is to raise an organisation’s process maturity level:

Level 1 Level 2 Level 3 Level 4 Level 5

Initial Repeatable Defined Managed Optimised

Ad-hoc and Small scale Processes Processes are Collaborative,

chaotic processes processes; documented and measure and continuous
understood and standardised controlled improvement
repeatable across organisation culture

Process Maturity Model

Business Process Management (BPM)
Process Maturity
• Benefits of achieving a high process maturity level:

• Operational Consistency
•Clarity/Transparency
• Distribution of Policies & Standard Procedures
• Culture of Collaboration & Knowledge Sharing

• Cost Avoidance
• Maximize Value to Customers
• Customers’ Confidence
• Accountability & Efficiency Across All Ranks
Discussion: Process Maturity

• Think about 1- 3 business processes that you are familiar with

• Which process maturity level do you think (or feel) each process is sitting
at?

Level 1 Level 2 Level 3 Level 4 Level 5

Initial Repeatable Defined Managed Optimised

Ad-hoc and Small scale Processes Processes are Collaborative,

chaotic processes processes; documented and measure and continuous
understood and standardised controlled improvement
repeatable across organisation culture

Process Maturity Model

 APQC’s
Process Classification Framework (PCF)
American Productivity & Quality Centre (APQC)
Process Classification Framework (PCF)
• PCF: A framework of cross-functional business processes commonly found
in most organisations (in public and private sectors)

• The framework has a multi-dimensional coverage:

– Horizontal: Twelve process categories which cover major enterprise
functions comprehensively
– Vertifical: Five-level process hierarchy which defines processes from
enterprise-level overview down to task-level view
 American Productivity & Quality Centre (APQC)
Process Classification Framework (PCF)
Processes
Operating

1.0 2.0 3.0 5.0 6.0

4.0
Develop & Market & Develop &
Develop Deliver Manage
Manage Sell Manage
Vision & Products & Customer
Products & Products & Human
Strategy Services Service
Services Services Capital
Management

Processes
& Support

9.0 10.0 11.0 12.0

7.0 8.0
Acquire, Manage Manage Develop &
Manage Manage
Construct & Enterprise External Manage
Information Financial
Manage Risk & Relation- Business
Technology Resources
Assets Compliance ships Capabilities
American Productivity & Quality Centre (APQC)
Process Classification Framework (PCF)

Category
Highest level of
Process Group processes within
Groups of related an organisation
Process processes
Interrelated Example:
activities Example: Manage Customer
Plan & Manage Service (10006)
Activity Customer Service
Key events when Example:
Manage Customer Operations (10379)
performing a process
Service Requests /
Inquiries (10388)
Task Example:
Decomposition Respond to customer
of activities requests / inquiries
(10396)
Example:
Call customers
APQC’s Process Classification Framework (PCF)
How does PCF Help Us?
• End-to-end view on business processes within an organisation (clarity)

• Organise business processes more systematically and effectively

(content management)

• Align an organisation’s business processes with its strategic goals

(alignments)

• More rigorous and objective comparisons of process effectiveness

within or across organisations (benchmarking)

• Avoid any ‘federalism’ concerns, e.g. something which only works for
part of the orgnisation but not the other (neutrality)
Modelling Business Processes
with BPMN2.0
 Modelling Business Processes

• What are the differences between Business Process Modelling and

Business Process Management?

Business Process Modelling Business Process Management

An activity A business function

More defined outputs Less tangible outputs

Specific focus (produce process Wider focus (drive process maturity and
models) improvement)
Modelling Business Processes

• Process models: Visual representation of sequential flow and control logic

of a set of related activities

• Two main types of process models:

– Current state (‘As-Is’)
– Future state (‘To-Be’)

• Other common documents which describe business processes are SOPs,

training manuals, etc.
– Review these documents critically before you use them because:
• They may be outdated, incomplete or incorrect
• They may not show hidden processes
Modelling Business Processes
How to Model a Process?
• Determine a suitable approach (top-down vs. bottom-up):

Top-down Bottom-up

Complicated processes Well-defined processes

Involving a single or a few business
Involving many business units
units
Help process modelling to stay in
Increase process modelling’s efficiency
scope
Depend on projects’ requirements

• Define process model boundaries (scope)

Modelling Business Processes
How to Model a Process?
• Conduct SIPOC* and document analysis
– Review existing SOPs, policies, training manuals, etc.
– Develop SIPOC

* SIPOCs: Supplier-Input-Process-Output-Customer Matrix

• Engage with stakeholders involved to discover how the process is being

operated
– The six basic questions: Who, What, When, Why, How & Where
– Process modelling workshops provide good opportunities for
facilitating modelling and stakeholder engagement
Modelling Business Processes
How to Model a Process?
• Good process models have the following features:
Individual Process Models
Have a clear description
Have a clear process owner
Have a logical start and end
Have a clear ‘last update’ date
Use correct process modelling
notations
Inter-related Process Models
Linked to other process models logically
Consistency on the level of details
presented
Aligned with APQC’s Process
Classification Framework
Consistent use of notations across
different process models
Discussion: Modelling Business Processes
• What do you think about the qualities of these process model examples?
Business Process Modelling Notation (BPMN)
2.0
• What is BPMN2.0?
– A standard of modelling business processes

• Benefits of using BPMN2.0:

– Consistent styles and formatting
– Process model can be compared and reused more easily
– Support enterprise content management
BPMN2.0 Key Notations
BPMN2.0 Key Notations
• Pools: Define a group of participants that collaborates within a process
– Examples: Customers, Border Agencies, etc.

• Lanes (Swimlanes): Define a specific participant or role within a process

– Examples: Delivery Branches, Distribution Centres, etc.
BPMN2.0 Key Notations
• Start: Indicate triggers of the process
• End: Indicate end deliverables of the process
BPMN2.0 Key Notations

• Tasks (activities): Describe ‘how’ a process functions or operates

• A ‘verb + noun’ structure
– Examples: deliver items, enter customers’ details, etc.
BPMN2.0 Key Notations

• Sometimes a group of related tasks operate within a process; those tasks

can be grouped indicated as a sub-process
– Example: Border agency inspection (a sub-process)
• Broken into x-ray items, conduct bio-security assessment, etc.
(tasks)
BPMN2.0 Key Notations

• Sequence flows: Indicate sequential order of activities

• Message flows: Indicate information flow

•
BPMN2.0 Key Notations

• Gateways: Indicate decisions made in a process

BPMN2.0 Key Notations
• Data objects: Indicate artifacts of information which flow through a process
(e.g. notifications, etc.)
• Data stores: Indicate a medium (physical or system) where data is read or
written
Discussion: BPMN2.0

• On the sample process model, what BPMN2.0 notations are used

correctly? What notations are used incorrectly?
Process Modelling Workshops
Process Modelling Workshops

• What is a process modelling workshop?

– A facilitated session to discuss how a business process operates,
should operate, or will best operate

• Key benefits:
– Help identify and understand a process ‘as you know it’
– Engage with stakeholders on the consultation process
Process Modelling Workshops

• Why do we need to conduct a process modelling workshop?

– A business process usually involves multiple business units
• Important for all stakeholders to provide their inputs

– Most projects involve stakeholders which do not operate the processes

directly but have interests on them, e.g. Legal, Risk & Assurance, etc.
• Workshops ensure that their concerns are expressed
Process Modelling Workshops

• These workshops are suitable if:

– You are modelling a process which involves different business units or

locations

– You are modelling a complicated or sensitive process

– You are driving a process change or improvement where impacts are

uncertain

– You are doing process analysis or improvement for a project which

involves multiple stakeholders
Process Modelling Workshops
Planning a Workshop

• Define workshop’s goal(s) clearly

– Avoid trying to model a process and ask for improvement ideas at
the same time

• Think about workshop participants

– A mixture of operations leaders and subject-matter experts (SMEs)
is usually preferred
– Strategic leaders are usually not mandatory, unless: (i) you want
them to define scope of the work; (ii) or you want their support to
kick-start the workshop

• Think about what level of details you will need to dig down in the
workshop
– If a high-level process model overview is sufficient for your analysis,
do not be tempted to drill down to low-level details

• Prepare visual aids to be used in the workshop (e.g. post-it notes, etc.)
Process Modelling Workshop
Conducting a Workshop
• Provide background info to participants – project scope, process
boundaries, etc.

• List down all processes to be covered in the workshop – prioritise with

participants if time is limited

• Draw an empty process model ‘frame’ on a whiteboard (or a wall if it can

be used for this purpose)

• Ask questions (can be generic or specific, depending on participants) –

use post-it notes to show them on the whiteboard or wall

• Ask for exceptions and variations

Process Modelling Workshop
Conducting a Workshop
• Use SIPOC* to build a ‘big-picture’ understanding

• If participants’ understanding (or viewpoints) to a process are conflicting

to others
– Do not rule them out unless you are clear they are unacceptable
legally or policy speaking

• It is a discovery process: Do not try to limit to what you (or participants)

know and think the process should be
Modelling Business Processes
Using Sparx EA
Modelling Business Processes Using Sparx EA
Software Demonstration
Questions & Answers
The End
Appendix
Business Process Models vs. Standard
Operating Procedures (SOPs)

• Are Business Process Models the same as SOPs? No

Business Processes SOPs

• Diagrammatic representation • Written instructions (mainly)

• Show end-to-end organisational • Show sequential flow of activities

view (tasks)
• Understand how processes deliver • Ensure a consistent quality of
values process outputs
Appendix
Developing SOPs: Recommended Practice
Before Development Starts:
• Chose the right people to develop SOPs
• Develop a SOP checklist
During SOP Development:
• Use a SOP checklist
After SOPs are Developed:
• Chose the right SOP reviewers and approvers
• Conduct peer reviews on SOPs
• Test SOPs
• Place SOPs in visible locations (e.g. labelled binders reachable by end-
users)
• Keep SOPs updated (half-yearly or annually)
Appendix
Developing SOPs: Recommended Practice
Content:

• Use active voice and present-tense verbs (e.g. ‘Remove any empty trays from
holder’, instead of ‘ensure empty tray has been removed from holder’
• Present information in unambiguous ways
Formatting:

• Follow a step-by-step format (e.g. bullet points)

• Keep SOPs concise

• Have a clear ‘table of content’

Organisation:

• Good document controls (e.g. clear SOP title, ID, version number, effective date,
document owner)
• Use flowcharts to illustrate the workflow covered on SOPs

• Be consistent in writing styles if SOPs are developed by different parties