Requirement Excellence

Framework
Business Process Analysis

www.enfocussolutions.com
Business Process Analysis
Business process analysis helps an organization improve how it
conducts its functions and activities in order to reduce overall costs,
provide more efficient use of scarce resources, and better support
customers. It introduces the notion of process orientation, of
concentrating on and rethinking end-to-end activities that create
value for customers, while removing unnecessary, non-value-added
work.
Generally technology is implemented to automate or streamline
business processes, so it is important to conduct a business process
analysis to understand how the process works and how it can be
improved.
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What are Outputs of a Business
Process Analysis?
As Is Model
To Be Model
Customer and Supplier Definitions
Process Ownership and Governance
Roles and Responsibilities
Process Impact
Organization Impact
System Impact
Risk
Impact Type
Impact Level
Expected Outcomes
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RequirementPro
Business Process Functionality
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Process Category
Process Group
Process
Activity
Business Process
Impact
Project
Scope
Statement
Functional
Requirement
Supplemental
Requirement
The process structure is organized using
APQCs Process Classification Structure (PCF).
The PCF was developed by APQC and its
member organizations as an open standard to
facilitate improvement through process
management and benchmarking, regardless of
industry, size, or geography. The PCF organizes
operating and management processes into 12
enterprise-level categories, including process
groups and over 1,000 processes and
associated activities.
During Process Analysis, impacts on
existing business processes from are
identified and documented .
Depending on the size of the project,
AS IS and TO BE business process
models may need to be created or
updated. The business process
impacts are later used in the Project
Scope Activity to define scope
statements which are used to elicit
needs from Stakeholders and specify
requirements.
Since software is used to provide
automated support for a business
process, it is essential to understand
how the process is going to work
before defining software
requirements.
Feature
Impact
What is a Business Process?
A business process is the the set of steps a business performs to
create value for customers.
A process consists of three components: inputs, activities, and
outputs.
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Three Types of Processes
Operating Process
Primary processes are end-to-end, cross-functional processes which directly deliver value
Represent the essential activities an organization performs to fulfill its mission
Make up the value chain where each step adds value to the preceding step as measured by its
contribution to the creation or delivery of a product or service, ultimately delivering value
Primary processes can move across functional organizations, across departments or even between
enterprises and provide a complete end-to-end view of value creation
Support Process
Support primary processes, often by managing resources and/or infrastructure required by primary
processes
Differentiator is that support processes do not directly deliver value- Does not mean that they are
unimportant to an organization
Examples of support processes include information technology management, facilities or capacity
management and human resource management
Support processes are generally associated with functional areas
Management Process
Used to measure, monitor and control business activities
Ensure that a primary or supporting process meets operational, financial, regulatory and legal goals
Do not directly add value
Necessary in order to ensure the organization operates effectively and efficiently
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Examples of Processes
University
Teaching Students
Paying for Classes
Hospital
Emergency Care
Payroll
Manufacturing
Purchasing Material
Training Workers
Federal Government Agency
Procurement
Hiring New Employees
Retail Store
Selling Products
Employee Scheduling
Bank
Opening New Accounts
Statement Distribution
Restaurant
Preparing Meals
Advertising
Construction
Budgeting
Managing Subcontractors
Not for Profit
Distribution of Funds
Employee Recruitment

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Who are the Process Customers?
Because a transformation process exists to satisfy
customer requirements, process owners need to
understand who their customers are, what they want,
and how to provide what they want.
The customers of a process are the people who require
the products and services that are the result of the
process or one phase of the process. They are classified
as:
External customers-people who ultimately use the products
and/or services (process outputs or work results) of an
organization; and
Internal customersthe owners of the next phases in the
process who must wait for the delivery of a product or service
before completing work.
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Complete View of Process
A process consists of a mix of automated and manual activities in a structured or ad-
hoc manner to deliver expected outcomes.
Understanding the overall set of activities that comprise a process and their business
rules is essential.
The requirements analyst needs to understand the entire picture to understand how a
solution should operate. Systems/applications generally only automate a part of the
process.
Activities that are to be automated define the scope of the development and
implementation work which may span multiple applications.
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Manual
Activity
Automated
Activity
Business Rules
Automated
Activity
Automated
Activity
Manual
Activity
Application Application
Business Process
Process Improvement
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Symptoms of Poor Business
Process Design
No standard process/method for addressing how to define
business requirements and when to improve business
processes.
When automation of processes is commissioned, Business
says that they do not always get what they think they have
asked for.
The processes used to document and communicate business
processes and requirements are neither easy nor
documented.
Business programs frequently exist in a culture of reacting to
cross-functional problems/emergencies.
IT has responsibility for creating and maintaining business
process flows, business requirements and business rules.
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How do you Improve a Process?
Use a structured and organized approach and methodology.
Eliminate activities that do not add value for the customer. Ask yourself: "Would the customer
want to pay for this activity?" If the answer is no, ask yourself: "Why are we doing this? Is it a
federal law? A state law?" If the answer is no, ask yourself: "What benefit do we gain by doing
this?" At this point, you are coming close to eliminating the activity.
Eliminate constraintsthings that frustrate employees and slow processes.
Streamline/simplify processes. It is difficult to document and teach people complex processes.
Once processes are streamlined, automate the process if feasible.
Provide leadership in a positive direction. Function as a strategist. Envision and invent the future
with streamlined processes and relationships.
Act empowered; be accountable. As individuals and members of teams, function as process
owners and consider process management and improvement an integral part of daily work.
Don't say, "They won't let us " Make decisions, not excuses.
Document and publicize improvements. Success breeds success.
Continue to monitor and evaluate processes to identify additional opportunities for
improvement.
Ask what, where, why, who, when, and how questions about each step in a process (or job).
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Typical Benefits for Process
Improvement
Typical results of a well-established process improvement
program include:
Productivity improvements of 10% - 50%
Quality improvements: significantly
decreased error rates and field
problems, resulting in reduced rework
Improved ability to plan and control
projects, reduced project delays
Cycle time reductions of 20% -50%
Cost savings average 5:1 ROI
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Other Benefits
Fewer overtime hours
More stable work environment
Improved working conditions
Improved quality of work life
Improved employee morale
Reduced employee turnover
Improved management of project risk
Improved customer satisfaction
Better company image
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Desired Outcomes
Processes are documented, usable and consistent
Schedules and budgets are based on historical
performance and are realistic
Expected results for cost, schedule, functionality and
product quality are usually achieved
Disciplined processes are followed consistently
because all participants understand their value
Broad-scale, active involvement across the
organization in improvement activities
Roles and responsibilities are clear
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Process Reengineering Principles
Organize around outcomes not tasks - helps eliminate the need for handoffs and
provides a single point of contact for the customer
Have those who use the output of the process perform the process those who
are closest to the work should do the work
Merge information - processing work into the real work that produces the
information - People collecting the work should be responsible for processing the
work instead of handing over to some other individual or system
Treat geographically dispersed resources as though they were centralized -
technology advancements make this a reality through combining dispersed
systems and teams as though they were a single team
Link parallel activities instead of integration their results - helps reduce errors at
the end of the process
Put the decision point where the work is performed and build control into the
process - empowers the performer of the work to get the resources he needs to
get the job done most efficiently
Capture information once - at the source - eliminates costly mistakes of
information not being passed effectively from one handoff to another
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Process Analysis
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Process Analysis
Analysis generates the information necessary for the
organization to make informed decisions assessing the
activities of the business
Due to business change the processes of an organization can
quickly become inconsistent to their original design and no
longer meet the needs of the business
Process analysis is an essential tool to show how well the
business is meeting its objectives
Creates an understanding of how work (the transformation of
inputs to outputs) happens in the organization
Information becomes a valuable resource to management and
leadership to understand how the business is functioning
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Process Analysis
Analyze the Current Process
At which point doe the process break down or experience delays?
At which points do people typically experience frustration with the process?
Which parts of the process seem to consume an inordinate amount of time?
Which parts of the process lead to low quality outcomes?
Which parts of the process incur unacceptable costs?
Envision the New Process
What are things we can do to exceed our customers expectations?
Could the accuracy, speed, and quality of the process be improved?
How might the process be improved to make it easier for customers to do business
with us?
How we can reduce costs?
What can we do to reduce cycle times?
How can we improve quality?

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Questions to Understand the
Process
What?
is there to do?
is being done?
should be done?
can be done?
constraints keep us from doing
what needs to be done?
Who?
does this job?
should do this job?
knows how to do it?
should know how to do it?

Where?
is this job done?
should it be done?
can it be done?
When?
is this job done?
should it be done?
can it be done?
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Process Analysis Methods
Interviews
Observations
Process Benchmarking
Process Modeling and Simulation
Value Chain Analysis
SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats)
Information Flow Analysis
Discrete Event Simulation
Activity Based Costing
Cycle-Time Analysis
Decision Analysis
Sensitivity Analysis
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Hand-Offs
Any point in a process where work or information passes from one
system, person or group to another is a handoff for that process.
Handoffs are very vulnerable to process disconnections and should
be analyzed closely.
Typically, the fewer number of handoffs, the more successful the
process.
Which of the handoffs are most likely to break down the process?

Questions to ask of each handoff:
Are there any bottlenecks of information or services as a result of
handoffs happening too quickly?
Can any handoff be eliminated?
Where do streams of information come together and is the timing
accurate?
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Process Culture
A process culture is a concept in which the business processes are known,
agreed on, communicated and visible to all employees
Characteristics of a process culture include
General agreement on what are the business processes
Understanding how business processes interact and affect each other
Clear definition of what value each process produces
Documentation of how each process produces its results
Understanding of what skills are required for each process
Understanding of how well each process performs
Ongoing measurement of process performance
Management decisions based on process performance knowledge
Owners of each process having responsibility and accountability for process
performance

To promote a process culture, we recommend that business processes be documented and maintained by
business units using the Enfocus Requirement Suite.. The processes will be available to all stakeholders through
the stakeholder portal.
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To Be Process Design
Considerations
Change the process in ways that provide value that the customer wants
for example more speed and efficiency, higher quality, more accuracy, less
cost, or single point of contact between customers and your company.
If input to the process naturally form a cluster, create a separate process
for each cluster
Address the biggest time waster in the process first such as points where
there is extensive waiting or rework.
Consider creating several process that can operate in parallel for steps that
can be done independently and not have to be done in a sequence.
Look for opportunities to remove unnecessary reviews of completed work
Decrease the number of steps in the process; identify opportunities to
simplify steps that are unnecessarily complex.
Involve as few people as possible in performing the process; reduce the
number of hand-offs.
Eliminate signoffs or approvals by individuals on activities they dont know
much about.

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Define the Process Requirements
Prepare To Be Process Model
Define Process Requirements
Increase customer value by ..
Improve quality by .
Decrease cost by ..
Reduce cycle time by ..
Reduce rework by .
Improve efficiency.
Review To Be Process Model and Process Requirements with
Stakeholders
Prepare functional and supplemental requirements for the To Be
process model
Prepare training and organizational change requirements for
implementation of the new To Be process model
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Process Benchmarking
Many organizations do not spend enough time optimizing a
business process before automating it; they simply automate what
was done manually or what the previous system did. We call this
paving the cow path.
Benchmarking is a great technique that organizations can use to
determine where a business process is performing well and other
areas where is not performing not so well by comparing their data
against their peers.
Results from a benchmark study helps an organization decide
where to focus their limited resources for long-term sustainable
improvement. Combined with best practices information,
benchmarking can help organizations quickly identify and solve
common business process performance problems.
Enterprise subscriptions receive one free benchmark per year.
Additional benchmarks are available for a fee.
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Define the Process Requirements
Inputs
Outputs
Workflow
Ownership
Performance Metrics
Business Rules
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Implementing the New Process
Prepare requirement bundle for the new process requirements
Define appropriate lifecycle events for the new process. Lifecycle events might include:
Validate
Communicate Distribute process requirement bundle to wide audience to get the
message about the upcoming implementation of the new process
Educate and Familiarize Build a more detailed understanding of how the new process
works through role-play, practice, and simulation. Consider making a video.
Pilot If you suspect that some difficulties in the new process need to be worked out,
pilot it.
Implement Put the new process into production by declaring the start of new
operations.
Break from the Past Remove the artifacts of the old process such as old forms paper
stocks, equipment and so forth to reduce any temptation to shift back into previous
habits.
Optimize Measure process performance according metrics that were chosen. Identify
problems and take needed action. Update performance metrics and targets as necessary
Trace the requirements

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APQC Process Classification Framework
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Process Classification Frameworks
There are a number of process reference models available,
including: Accenture, APQCs Process Classification Framework
(PCF), (SAP), Supply Chain Council, the Telecommunications
Management Forum, and the Value Chain Group.
The Process Classification Framework (PCF) developed by APQC in
1992, is a widely used business tool. This open source framework is
commonly referenced in business books, incorporated into
numerous consulting methodologies for process improvement and
re-engineering,
In business process design, frameworks and reference models help
support process analysis, design, and modeling activities. Starting
with a process framework or reference model can significantly
accelerate these activities, providing analysis professionals with a
sturdy foundation on which to build.
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Process Classification Frameworks
A framework helps organizations in three key areas:
benchmarking,
content management, and
business process definition.
The cost of not using a process framework is the
additional time it takes the process design team to
develop their own process model and obtain process
consensus from the project stakeholders.


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APQC Business Process
Classification
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Enfocus Solutions Inc. organizes
most of its content using APQC
Process Classification
Framework.
This open source framework is
available on our site as well as
APQC
PCF has been translated into
many languages, including
Japanese, Chinese, Spanish,
Polish, and Portuguese.
Industry specific versions of the
framework are also available.
The framework is organized into
the 12 process areas as shown in
the diagram on the left.

APQC Process Classification Framework
(PCF)
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Business Process Modeling
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Business Process Modeling
Set of activities involved in creating representations of an
existing (as-is) or proposed (to-be) business process
Provides an end-to-end perspective of an organizations
operating, supporting and management processes
Modeling is a means to an end and not an end in itself


You model to get results and reach conclusions
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What is a Business Process
Model?
Documentation of a business process using a combination of
text and graphical notation.

Depicts the Process that People employ to provide value to
their Customer with a strong emphasis on how the work is
done.

Defines a process as a specific ordering of work activities
across time and place with a beginning, an end, and clearly
defined inputs and outputs.

A component of the overall Business Architecture that serves
as a reference for Business Analysis activities.
Why Model a Business Process?
BABOK: Describe the functions associated with the business activities...
and the inputs, controls, outputs, and mechanisms/resources used of those
activities. (v1.4 Sec 2.2.20.1)
Understand how labor and resources are used to create products or
services for a companys Customers. Identify areas that could be improved,
made more efficient and re-engineered
Create an understanding of where Systems/Applications can or do automate
or streamline human or mechanized processes capture requirements
Integrate activities between departments/companies especially necessary
after a merger of different groups of People producing similar or dependent
products/services
Assist in implementation and acceptance of Six Sigma, ISO, CMM or other
standards
What other uses can you see? The list is endless
Common Methods of Modeling
BPML Business Process Modelling Language
An Extensible Mark-up Language (XM)-based meta-language developed by the
Business Process Management Initiative (BPMI) as a means of modelling
business processes
BPEL Business Process Execution Language
An XML-based language designed to enable task-sharing for a distributed
computing or grid computing environment - even across multiple
organizations - using a combination of Web services.
BPMN Business Process Modelling Notation
A standard graphical notation used to facilitate the understanding of business
transactions between organizations.
UML Unified Modelling Language
A notation that allows the modeller to specify, visualize, and construct the
artefacts of software systems, as well as business models.


USE WHAT WORKS FOR YOUR PROJECT ENVIRONMENT!
Do what you know. Learn to do more. But dont fake it.


Commonly Used Process Standards and Notations
Business Process Modeling Notation (BPMN)
Flow Charting
Swim Lanes
Event Process Chain (EPC)
Value Chain
Unified Modeling Language (UML)
IDEF-0
LOVEM-E
SIPOC
Systems Dynamics
Value Stream Mapping
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Tailor Your Model to your
Project & Self
BPML, BPEL, etc. are well and good if:
You are trained and comfortable with their use
Your target audience (Business and Tech Teams) understand
and are comfortable with their use

Beware! Most organizations are not properly equipped
or trained to produce documentation with these
standards!
Valid alternatives include using Visio, PowerPoint, Omni
Graffle or other tools that can represent activities graphically
or with text!
Diagrams, Maps, and Models
Diagrams
Process diagram often depicts simple notation of the basic workflow of a process
Depicts the major elements of a process flow, but omits the minor details which
are not necessary for understanding the overall flow of work
Maps
More precision than a diagram
More detail about process and important relationships to other elements such as
performers (actors), events, results
Provide a comprehensive view of all of the major components of the process
Models
Represents the performance of what is being modeled
Needs greater precision, data about the process and about the factors that affect
its performance
Often done using tools that provide simulation and reporting capability to
analyze and understand the process
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