Getting Started with Business Transformations

A well-known proverb states that "A picture is worth a thousand words." In relation to Business Process Management (BPM), a credible analyst might have a few questions. What if the picture was taken from some particular angle, like directly overhead? What if it was taken from only an inch away or a mile away? What if the photographer did not focus the camera correctly? Does the value of the picture depend on who is looking at it?

Enterprise Process Maps are analogous in this sense of relative value. Every BPM project (holistic BPM kick-off, enterprise system implementation, Service-oriented Architecture, business process transformation, corporate performance management, etc.) should be begin with a clear understanding of the business environment, from the biggest picture representations down to the lowest level required or desired for the particular project type, scope and objectives.

The Enterprise Process Map serves as an entry point for the process architecture and is defined: the single highest level of process mapping for an organization.

It is constructed and evaluated during the Strategy Phase of the Business Process Management Lifecycle. (see Figure 1)

Fig. 1: Business Process Management Lifecycle

Many organizations view such maps as visual abstractions, constructed for the single purpose of process categorization. This, in turn, results in a lesser focus on the inherent intricacies of the Enterprise Process view, which are explored in the course of this paper. With the main focus of a large scale process documentation effort usually underlying an ERP or other system implementation, it is common for the work to be driven by the desire to "get to the details," and to the type of modeling that will derive near-term tangible results. For instance, a project in American Pharmaceutical Company X is driven by the Director of IT. With 120+ systems in place, and a lack of standardized processes across the United States, he and the VP of IT have decided to embark on a long-term ERP implementation. At the forethought of both are questions, such as: How does my application architecture map to the business? What are each application's functionalities, and where do the business processes utilize them?

Where can we retire legacy systems?

Well-developed BPM methodologies prescribe numerous model types to capture such information and allow for thorough analysis in these areas. Process to application maps, Event Driven Process Chains, etc. provide this level of detail and facilitate the completion of such project-specific questions. These models and such analysis are appropriately carried out at a relatively low level of process detail. (see figure 2)

Fig. 2: The Level Concept, Generic Process Hierarchy

The Level Concept in Brief

Figure 2 shows a generic, four-level process hierarchy depicting the breakdown of a "Process Area" into progressively more detailed process classifications. The number of levels and the names of these levels are flexible, and can be fit to the standards of the organization's chosen terminology or any other chosen reference model that makes logical sense for both short and long term process description.

It is at Level 1 (in this case the Process Area level), that the Enterprise Process Map is created. This map and its contained objects become the foundation for a top-down approach to subsequent mapping, object relationship development, and analysis of the organization's processes and its supporting infrastructure. Additionally, this picture serves as a communication device, at an executive level, describing the design of the business in its service to a customer. It seems, then, imperative that the process development effort, and this map, start off on the right foot. Figuring out just what that right foot is, however, is critical and trend-setting in an evolving organization.

Key Considerations

Enterprise Process Maps are usually not as living and breathing as other process maps. Just as it would be an extremely difficult task to change the foundation of the Sears Tower or a city plan for the entire city of Chicago, the Enterprise Process view of an organization usually remains unchanged once developed (unless, of course, an organization is at a stage where it is capable of true, high-level process innovation). Regardless, the Enterprise Process map is a key first step, and one that must be taken in a precise way.

What makes this groundwork solid depends on not only the materials used to construct it (process areas), but also the layout plan and knowledge base of what will be built (the entire process architecture).

It seems reasonable that care and consideration are required to create this critical high level map... but what are the important factors? Does the process modeler need to worry about how many process areas there are? About who is looking at it? Should he only use the color pink because it's his boss' favorite color? Interestingly, and perhaps surprisingly, these are all valid considerations that may just require a bit of structure.

Below are Three Key Factors to consider when building an Enterprise Process Map:

• Company Strategic Focus

• Process Categorization: Customer is Core

• End-to-end versus Functional Processes

Company Strategic Focus

As mentioned above, the Enterprise Process Map is created during the Strategy Phase of the Business Process Management Lifecycle. From Oracle Business Process Management methodology for business transformation, it is apparent that business processes exist for the purpose of achieving the strategic objectives of an organization. In a prescribed, top-down approach to process development, it must be ensured that each process fulfills its objectives, and in an aggregated manner, drives fulfillment of the strategic objectives of the company, whether for particular business segments or in a broader sense.

This is a crucial point, as the strategic messages of the company must therefore resound in its process maps, in particular one that spans the processes of the complete business: the Enterprise Process Map. One simple example from Company X is shown below (see figure 3).

Fig. 3: Company X Enterprise Process Map

In reviewing Company X's Enterprise Process Map, one can immediately begin to understand the general strategic mindset of the organization. It shows that Company X is focused on its customers, defining 10 of its process areas belonging to customer-focused categories. Additionally, the organization views these end-customer-oriented process areas as part of customer-fulfilling value chains, while support process areas do not provide as much contiguous value. However, by including both support and strategic process categorizations, it becomes apparent that all processes are considered vital to the success of the customer-oriented focus processes. Below is an example from Company Y (see figure 4).

Fig. 4: Company Y Enterprise Process Map

Company Y, although also a customer-oriented company, sends a differently focused message with its depiction of the Enterprise Process Map. Along the top of the map is the company's product tree, overarching the process areas, which when executed deliver the products themselves. This indicates one strategic objective of excellence in product quality. Additionally, the view represents a less linear value chain, with strong overlaps of the various process areas. Marketing and quality management are seen as a key support processes, as they span the process lifecycle.

Often, companies may incorporate graphics, logos and symbols representing customers and suppliers, and other objects to truly send the strategic message to the business. Other times, Enterprise Process Maps may show high level of responsibility to organizational units, or the application types that support the process areas.

It is possible that hundreds of formats and focuses can be applied to an Enterprise Process Map. What is of vital importance, however, is which formats and focuses are chosen to truly represent the direction of the company, and serve as a driver for focusing the business on the strategic objectives set forth in that right.

Process Categorization: Customer is Core

In the previous two examples, processes were grouped using differing categories and techniques. Company X showed one support and three customer process categorizations using encompassing chevron objects; Customer Y achieved a less distinct categorization using a gradual color scheme. Either way, and in general, modeling of the process areas becomes even more valuable and easily understood within the context of business categorization, be it strategic or otherwise. But how one categorizes their processes is typically more complex than simply choosing object shapes and colors.

Previously, it was stated that the ideal is a prescribed top-down approach to developing processes, to make certain linkages all the way back up to corporate strategy. But what about external influences? What forces push and pull corporate strategy? Industry maturity, product lifecycle, market profitability, competition, etc. can all drive the critical success factors of a particular business segment, or the company as a whole, in addition to previous corporate strategy.

This may seem to be turning into a discussion of theory, but that is far from the case. In fact, in years of recent study and evolution of the way businesses operate, cross-industry and across the globe, one invariable has surfaced with such strength to make it undeniable in the game plan of any strategy fit for survival. That constant is the customer. Many of a company's critical success factors, in any business segment, relate to the customer: customer retention, satisfaction, loyalty, etc. Businesses serve customers, and so do a business's processes, mapped or unmapped.

The most effective way to categorize processes is in a manner that visualizes convergence to what is core for a company. It is the value chain, beginning with the customer in mind, and ending with the fulfillment of that customer, that becomes the core or the centerpiece of the Enterprise Process Map. (See figure 5)

Fig. 5: Company Z Enterprise Process Map

Company Z has what may be viewed as several different perspectives or "cuts" baked into their Enterprise Process Map. It has divided its processes into three main categories (top, middle, and bottom) of Management Processes, the Core Value Chain and Supporting Processes. The Core category begins with Corporate Marketing (which contains the activities of beginning to engage customers) and ends with Customer Service Management. Within the value chain, this company has divided into the focus areas of their two primary business lines, Foods and Beverages.

Does this mean that areas, such as Strategy, Information Management or Project Management are not as important as those in the Core category? No! In some cases, though, depending on the organization's understanding of high-level BPM concepts, use of category names, such as "Core," "Management" or "Support," can be a touchy subject. What is important to understand, is that no matter the nomenclature chosen, the Core processes are those that drive directly to customer value, Support processes are those which make the Core processes possible to execute, and Management Processes are those which steer and influence the Core.

Some common terms for these three basic categorizations are Core, Customer Fulfillment, Customer Relationship Management, Governing, Controlling, Enabling, Support, etc.

End-to-end versus Functional Processes

Every high and low level of process: function, task, activity, process/work step (whatever an organization calls it), should add value to the flow of business in an organization. Suppose that within the process "Deliver package," there is a documented task titled "Stop for ice cream." It doesn't take a process expert to deduce the room for improvement. Though stopping for ice cream may create gain for the one person performing it, it likely benefits neither the organization nor, more importantly, the customer. In most cases, "Stop for ice cream" wouldn't make it past the first pass of To-Be process development. What would make the cut, however, would be a flow of tasks that, each having their own value add, build up to greater and greater levels of process objective. In this case, those tasks would combine to achieve a status of "package delivered." Figure 3 shows a simple example:

Just as the package can only be delivered (outcome of the process) without first being retrieved, loaded, and the travel destination reached (outcomes of the process steps), some higher level of process "Play Practical Joke" (e.g., main process or process area) cannot be completed until a package is delivered.

It seems that isolated or functionally separated processes, such as "Deliver Package" (shown in Figure 6), are necessary, but are always part of a bigger value chain. Each of these individual processes must be analyzed within the context of that value chain in order to ensure successful end-to-end process performance. For example, this company's "Create Joke Package" process could be operating flawlessly and efficiently, but if a joke is never developed, it cannot be created, so the end-to-end process breaks.

Fig. 6: End to End Process Construction

That being recognized, it is clear that processes must be viewed as end-to-end, customer-to-customer, and in the context of company strategy.

But as can also be seen from the previous example, these vital end-to-end processes cannot be built without the functionally oriented building blocks. Without one, the other cannot be had, or at least not in a complete and organized fashion. As it turns out, but not discussed in depth here, the process modeling effort, BPM organizational development, and comprehensive coverage cannot be fully realized without a semi-functional, process-oriented approach.

Then, an Enterprise Process Map should be concerned with both views, the building blocks, and access points to the business-critical end-to-end processes, which they construct. Without the functional building blocks, all streams of work needed for any business transformation would be lost mess of process disorganization. End-to-end views are essential for utilization in optimization in context, understanding customer impacts, base-lining all project phases and aligning objectives. Including both views on an Enterprise Process Map allows management to understand the functional orientation of the company's processes, while still providing access to end-to-end processes, which are most valuable to them. (See figures 7 and 8).

Fig. 7: Simplified Enterprise Process Map with end-to-end Access Point

The above examples show two unique ways to achieve a successful Enterprise Process Map. The first example is a simple map that shows a high level set of process areas and a separate section with the end-to-end processes of concern for the organization. This particular map is filtered to show just one vital end-to-end process for a project-specific focus.

Fig. 8: Detailed Enterprise Process Map showing connected Functional Processes

The second example shows a more complex arrangement and categorization of functional processes (the names of each process area has been removed). The end-to-end perspective is achieved at this level through the connections (interfaces at lower levels) between these functional process areas.

An important point to note is that the organization of these two views of the Enterprise Process Map is dependent, in large part, on the orientation of its audience, and the complexity of the landscape at the highest level. If both are not apparent, the Enterprise Process Map is missing an opportunity to serve as a holistic, high-level view.

Conclusion

In the world of BPM, and specifically regarding Enterprise Process Maps, a picture can be worth as many words as the thought and effort that is put into it. Enterprise Process Maps alone cannot change an organization, but they serve more purposes than initially meet the eye, and therefore must be designed in a way that enables a BPM mindset, business process understanding and business transformation efforts. Every Enterprise Process Map will and should be different when looking across organizations. Its design will be driven by company strategy, a level of customer focus, and functional versus end-to-end orientations.

This high-level description of the considerations of the Enterprise Process Maps is not a prescriptive "how to" guide. However, a company attempting to create one may not have the practical BPM experience to truly explore its options or impacts to the coming work of business process transformation. The biggest takeaway is that process modeling, at all levels, is a science and an art, and art is open to interpretation. It is critical that the modeler of the highest level of process mapping be a cognoscente of the message he is delivering and the factors at hand. Without sufficient focus on the design of the Enterprise Process Map, an entire BPM effort may suffer.

For additional information please check: Oracle Business Process Management.