Business Process Mapping Methodology No. M12 August, 2000

1. Business Process Mapping Methodology No. M12 August, 2000

2. Business Process Mapping • Objectives: • To understand and evaluate the activities, tasks, inputs and outputs that occur within a complex work process. • Visualizing a complex process by decomposing it into a low-tech, high touch, sketch of the retraceable work flows that add-value to a product/service. • To create an interactive environment where owners, contributors, customers and providers can study and review individual work processes as small events within a large context. • To introduce an iterative process that generating insights and identifies opportunities to improve customer satisfaction through reduced costs, improved efficiencies, rationalized assets, changed behaviors and reduced cycle-time.

3. Business Process Mapping The Premise: Effect stakeholder participation and contribution in the work process redesign effort: To Interact is to Participate To Participate is to Fingerprint To Fingerprint is to Commit To Commit is to Own To Own is to Mobilize To Mobilize is to Change “For us, the core of management is... the art of mobilizing the intellectual resources of all employees in the service of the firm.” Konosuke Matsushita

4. The Challenge: Engage all users and providers in the discovery process Get providers, customers and stakeholders to actively participate Engage stakeholder participation right from the start Involve mid-manager constituents and earn their support Use Process Mapping to build owners’ confidence Identify customer and provider value-add opportunities for performance improvements a an iterative process Draw out and welcome innovation and “out-of-the-box” thinking

5. Participative Business Process Redesign Issue Reengineering People: Culture: Processes: Organization: Technology: Mobilized, Empowered and Enabled Dramatic personal change with shared risk Rationalize and validate current models before redesigning the processes Flat, internal and external provider/ customer-focus Innovate breakthroughs via enabling technologies Patronized Moderate disruption with personal risk Redesign current structures procedures, methods and processes Hierarchical, task and functional focus Automate current practices Business Process Redesign Is Also a Key Mobilization Tool

6. Business Process Redesign: Conceptual Overview A “living” visual blueprint of an entire business process across the organization... Vertical Levels and Horizontal Functions Detail real work flows Highlight interfaces Identify decision points Determine barriers Determine who is: • Accountable • Responsible • Contributes • Informed Work Processes can stretch across many boundaries The Business Organizational

7. 7 Step 6. 4. 5. 1. 7. 2. 3. The Business ProcessRedesign Model James Champy Definition: To redesign the business processes by rethinking work activities, supported by innovations in technology, organization and extended customer relationships to achieve dramatic, measurable performance improvements of cost, quality, service and velocity. Performance Integrated Business Process Transformation World-Class Redesign Work Processes Best-of- Class • Overview • The Rough-Out • The As-Is • Determine Opportunities • The End-State • The Value Proposition • Plan-Do-Check-Follow-Up Streamline Activities Best Practice Incrementally Improve Tasks Best Performance Incidental Revolutionary Evolutionary Importance

8. 1 Document and Assess Tech Risk Define Add’l Fact Finding Requirements Develop Detail Proposal Plan Who, What Where How Much How Many Assess Biz Risk Internal Request • • Determine Office Responsible Checklist • • Formal Request • • • Concurrent: • Roles & Resp • Estimating • Task Plan • Scope • Assumptions • Tech Challenges • References • Staffing • Ind Specialists • Resume Prep • Software • Pricing Decision Points • • Proposal Planning Meeting Files & Storage • Competitive Differentiation Team Project Requisite Clarification • • • • • • Branch • • • Do • • Informal Request Report-out on Results Practice Don’t Process Flow Illustration "Live" Documents • Assign • Accountability • to Primary • Contact • CS Exec • Sr Mgr • Branch Mgr • Determine: • Win Theme • Scope • Hot Issues • Biz Solution • Tech Solution • Trng Solution Select Proposal Development Team Outgoing Request Thank You Letter • CS Exec • Sr Mgr • Proj Mgr • Consultants • Content Experts • APD • Branch Mgr Back-up RFP Origin Customer Input Proposal Final Production Misc.. Notations Outputs Charts/Graphs Product/ Service Delivery to Customer • Past Client • Current Client • Qualify Prospect • Unqualf Prospect • Suspect • SIC Preliminary Approval Present to Client Feedback Loops Actual Computer Reports Prepare Pre- Presentation When • Adhere To: • Design Std’s • Guidelines • Examples • Best-of-Class Submit Proposal Prepare Presentation Overview: Three Levels of Process Mapping Examine the content of complex work processes by mapping it as a retraceable flow of interdependent tasks. Rough-Out As-Is End-State

9. 1 10 Overview: Process Redesign Symbols Activities and Interfaces 1. Activities 2. Details 3. Reports 4. Documents 5. Multiple Activities 6. Meetings 7. Customers: Internal, External 8. Resources 9. Decision Points 10.Interconnects 7 3 Yes 9 4 6 Success! 1 No 2 • • • • Use appropriate sets of symbols for each process 5 8

10. 2 Customers The Rough-Out: Getting Started Enlist a client to help build the initial Rough-Out A value chain is a good starting point Sketch out the basic pieces Identify owner, client, customers and providers Keep it low-tech and flexible Incomplete is OK Proposal Development Process 5 Core Value Chains and (Sample) Key Processes Business Support: HR / Public Affairs / Legal / Admin / Communications Quality Delivery Customer Service Logistics Providers Resourcers Suppliers Manufacturing & Operations Marketing/Sales Account Mgmt Customer/ Tech Service Asset Mgmt Procurement Distribution R&D / PD&I Receiving Maintenance Engineering Quality Control Scheduling Information Technology:IT Strategy / Info Mgmt / Knowledge Mgmt / Info Systems Internal Customers

11. 2 Process Flow Illustration Who, What Where How Much How Many • • • • • • Decision Points • • Files & Storage • • • • • • • • • • • • "Live" Documents Back-up Customer Input Misc.. Notations Outputs Charts/Graphs Product/ Service Delivery to Customer Feedback Loops Actual Computer Reports When What the Rough-OutLooks Like: 6’ x 20’+ Role of Paper This baby should be big!… and very, very informal Facilitator

12. 2 ? Document and Assess Tech Risk Define Add’l Fact Finding Requirements Develop Detail Proposal Plan Assess Biz Risk Determine Responsible Office Checklist Internal Request Formal Request Concurrent: Roles & Resp Estimating Task Plan Scope Assumptions Tech Challenges References Staffing Ind Specialists Resume Prep Software Pricing Competitive Differ’tion Team Project Requisite Clarification Proposal Planning Meeting Yes ? Branch Do Report-out on Results Informal Request Practice Don’t Assign Accountability to Primary Contact CS Exec Sr Mgr Branch Mgr Select Proposal Development Team Determine: Win Theme Scope Hot Issues Biz Solution Tech Solution Trng Solution Thank You Letter Outgoing Request ? CS Exec Sr Mgr Proj Mgr Consultants Content Experts APD Branch Mgr Proposal Final Production RFP Origin Prepare Presentation Preliminary Approval Past Client Current Client Qualif Prospect Unqualf Prospect Suspect SIC Prepare Pre- Presentation Adhere To: Design Std’s Guidelines Examples Best-of- Class Present to Client ? Submit Proposal Yes Client Feedback No Rough-Out Example A Close-up Look: Proposal Development Process • Sketch out basic pieces • Leave plenty of blanks • Flag questions

13. 2 Rough-Out Validation Owner’s validation... the original process design, in it’s current operational state Clients and owner’s visualize the critical content they are familiar with... within a new context Validate No.1 with Clients/Owners Include close-up details Organize all related forms, reports and collateral's Keep it informal! Include every activity and task

14. 2 Providers Validate the Rough-Out Solicit the Provider’s Comments, Ideas and Builds The Providers identify opportunities for improvement Schedule “Process Mapping Fairs” Invite, managers and supervisors Socialize & communicate the event Prepare instructions, tools & props Display sign-in sheet Conduct a walk- through/orientation Proactively solicit new ideas

15. 3 The As-Is Model Informal... What’s in place now, warts and all • Capture Reality • Rational • Cultural • Emotional • Political Determine the client Identify the owner(s) Begin with the Rough-out as a strawmodel Work with owners to capture reality of the process Sketch BIG...wall-paper size Leave plenty of ”open space”

16. 3 OK Document and Assess Tech Risk Define Add’l Fact Finding Requirements Develop Detail Proposal Plan Assess Biz Risk Determine Responsible Office Checklist Internal Request Formal Request Concurrent: Roles & Resp Estimating Task Plan Scope Assumptions Tech Challenges References Staffing Ind Specialists Resume Prep Software Pricing Competitive Differ’tion Team Project Requisite Clarification Proposal Planning Meeting Yes Branch Do OK Report-out on Results Informal Request Practice Don’t Assign Accountability to Primary Contact CS Exec Sr Mgr Branch Mgr Select Proposal Development Team Determine: Win Theme Scope Hot Issues Biz Solution Tech Solution Trng Solution OK Thank You Letter Outgoing Request CS Exec Sr Mgr Proj Mgr Consultants Content Experts APD Branch Mgr Proposal Final Production RFP Origin Prepare Presentation Preliminary Approval Past Client Current Client Qualif Prospect Unqualf Prospect Suspect SIC Prepare Pre- Presentation Adhere To: Design Std’s Guidelines Examples Best-of- Class Present to Client Submit Proposal Yes Client Feedback No Owners Validate the As-Is Leaderships’ Unabridged, Top-Down, Original Design OK • Fill in missing pieces • Include connections • Answer questions

17. 3 Providers Validate the As-Is Model Rationalize the flow of work in a low-tech, high-touch, interactive environment. Red: Opportunities to improve Yellow: Need for Clarification Green: Strengths to be sustained Individual tasks (content) can be understood within the overall process (context) Visualize the forest, the trees ...and the bark Owners with insights generate valuable ideas

18. 4 Determine Opportunities: Many Mutual Customer/ Provider Benefits Post-its Red: Opportunities for improvement Changes Improvements Simplifications Resources Quality Quantity Sequence Elimination's Duplications IWIK I wish I knew… Yellow: Need for clarification Background Clarification Questions H2 How-To… Green: strengths to be sustained Strengths Things to leverage Best practice H2

19. 4 Document and Assess Tech Risk Define Add’l Fact Finding Requirements Develop Detail Proposal Plan Assess Biz Risk Determine Responsible Office Checklist Internal Request Formal Request Concurrent: Roles & Resp Estimating Task Plan Scope Assumptions Tech Challenges References Staffing Ind Specialists Resume Prep Software Pricing Competitive Differ’tion Team Project Requisite Clarification Proposal Planning Meeting Yes Branch Do Report-out on Results Informal Request Practice Don’t Assign Accountability to Primary Contact CS Exec Sr Mgr Branch Mgr Select Proposal Development Team Determine: Win Theme Scope Hot Issues Biz Solution Tech Solution Trng Solution Thank You Letter Outgoing Request CS Exec Sr Mgr Proj Mgr Consultants Content Experts APD Branch Mgr Proposal Final Production RFP Origin Prepare Presentation Preliminary Approval Past Client Current Client Qualif Prospect Unqualf Prospect Suspect SIC Prepare Pre- Presentation Adhere To: Design Std’s Guidelines Examples Best-of- Class Present to Client Submit Proposal Yes Client Feedback No Determining Opportunities A Close-up Look: Proposal Development Process • Providers/Owners complete the picture • Collect and display all displays and props • Include all related activities and tasks

20. 4 Determining Opportunities The Customers’ Ideal... The Abridged, Bottom-Up Model The customers identify opportunities for improvement Schedule “Process Mapping Fairs” Pre-present “stretch thinking” to clients Invite all customers... actively follow-up Advertise socialize & communicate Prepare instructions, tools & props Display sign-in sheet Conduct a walk-through Proactively solicit ideas & innovation

21. 4 Determining Opportunities ... Advertise, socialize and blatantly promote two fairs. The “Top-Down” Fair, and the “Front-line” Fair : Create & distribute invitations Follow-up with calls Get commitment Pin-Up, Ads and Wanted Posters Solicit supervisor support Explore additional incentives Follow-up, Follow-up, Follow-up to ensure everyone comes to the fair

22. 5 The End-State Model The Proposed…”Best-Of-All-Possible-Worlds” model faces Stakeholder expectations The opportunities are evaluated for performance and importance, qualifiable and quantifiable benefits Extend Process Map exhibitions Invite continuous improvements Identify quick hits Align opportunities’ BETA with strategy ID importance Vs performance gaps Redraw with formal improvements Qualify opportunities Quantifiable opportunities Create benefits case

23. Parking Lot 5 Document and Assess Tech Risk Define Add’l Fact Finding Requirements Develop Detail Proposal Plan Assess Biz Risk Determine Responsible Office Checklist Internal Request Formal Request Concurrent: Roles & Resp Estimating Task Plan Scope Assumptions Tech Challenges References Staffing Ind Specialists Resume Prep Software Pricing Competitive Differ’tion Team Project Requisite Clarification Proposal Planning Meeting Yes Branch Do Report-out on Results Informal Request Practice Don’t Assign Accountability to Primary Contact CS Exec Sr Mgr Branch Mgr Select Proposal Development Team Determine: Win Theme Scope Hot Issues Biz Solution Tech Solution Trng Solution Thank You Letter Outgoing Request CS Exec Sr Mgr Proj Mgr Consultants Content Experts APD Branch Mgr Proposal Final Production RFP Origin Prepare Presentation Preliminary Approval Past Client Current Client Qualif Prospect Unqualf Prospect Suspect SIC Prepare Pre- Presentation Adhere To: Design Std’s Guidelines Examples Best-of- Class Present to Client Submit Proposal Yes Client Feedback No The End-State Model A Close-up Look: Proposal Development Process • Build All stakeholders ideas into map • Collect additional props • Create Parking Lot for orphan ideas

24. 6 Build a Value Proposition for End-State Model Consider all Variables Consider IT automation implications Consider innovative, out-of-box new solutions Determine connections with other work process Factor in organization layers & levels Identify operating systems as networks Determine Core & non-core activities Determine Strategic & non-strategic activities Consider the big picture, understand the forest before we prune the trees

25. 6 Document and Assess Tech Risk Define Add’l Fact Finding Requirements Develop Detail Proposal Plan Assess Biz Risk Determine Responsible Office Checklist Internal Request Formal Request Concurrent: Roles & Resp Estimating Task Plan Scope Assumptions Tech Challenges References Staffing Ind Specialists Resume Prep Software Pricing Competitive Differ’tion Team Project Requisite Clarification Proposal Planning Meeting Yes Branch Do Report-out on Results Informal Request Practice Don’t Assign Accountability to Primary Contact CS Exec Sr Mgr Branch Mgr Select Proposal Development Team Determine: Win Theme Scope Hot Issues Biz Solution Tech Solution Trng Solution Thank You Letter Outgoing Request CS Exec Sr Mgr Proj Mgr Consultants Content Experts APD Branch Mgr Proposal Final Production RFP Origin Prepare Presentation Preliminary Approval Past Client Current Client Qualif Prospect Unqualf Prospect Suspect SIC Prepare Pre- Presentation Adhere To: Design Std’s Guidelines Examples Best-of- Class Present to Client Submit Proposal Yes Client Feedback No Build a Value Proposition for End-State Model Evaluate Real Value of Opportunities Volume: Flow test alternative paths Time: “Stopwatch” each process step Cost: Determine person-hours and A&M Paperwork: Organize all forms and reports Benchmark: Measure against Industry standards Lost value: Investment in teams & committees

26. 6 Importance Rate the importanceCustomers hold for service / product qualities Postponable, Essential & Critical Not needed Necessary Convenient Timeliness Responsiveness Convenience $ Cost Accuracy Training User Info, Reporting Service, Courtesy, Helpfulness Somewhat meets Expectations Earn a Partner For the Future Meets Expectations Exceeds Expectations Does Not Meet Expectations Build a Value Proposition for End-State Model Guidelines: Interview internal customers to determine which products / services are important to them and to understand the value proposition in fulfilling their expectations. How do you define and measure Service Quality? What is your biggest complaint ? Why do your choose us rather than a competitor? Have your complaints been resolved satisfactorily? In what areas do we most need to improvement? What would that improvement look like? How can we measure that? How would this improvement effect you or your business competitiveness? What is your number one challenge to us? How can we work with you to solve it? How do you envision extraordinary service? Remember: The “Boss” is a customer too. His expectations may be very different from the customers you provide products and services to. Performance Rate the performance levels for service / product qualities Timeliness Responsiveness Convenience $ Cost Accuracy Training User Info, Reporting Service, Courtesy, Helpfulness

27. 7 Do Check Plan Follow-up Plan – Do – Check – Follow-Up With the End-State Process Model in hand, It’s now time to make change happen… Establish the need Set a clear agenda ID & overcome barriers Arrange logistics Follow the agenda Record group thinking Practice good meeting behaviors Evaluate effectiveness Complete Assignments Follow-up on assignments Follow-up benefits and concerns Circulate minutes