11. Perspectives

11.5 The Business Process Management Perspective

BABOK® Guide

IIBA.org KnowledgeHub A Guide to the Business Analysis Body of Knowledge® 11. Perspectives 11.5 The Business Process Management Perspective

The Business Process Management Perspective highlights the unique characteristics of business analysis when practiced in the context of developing or improving business processes.

Business Process Management (BPM) is a management discipline and a set of enabling technologies that:

focuses on how the organization performs work to deliver value across multiple functional areas to customers and stakeholders,
aims for a view of value delivery that spans the entire organization, and
views the organization through a process-centric lens.

A BPM initiative delivers value by implementing improvements to the way work is performed in an organization.

BPM determines how manual and automated processes are created, modified, cancelled, and governed. Organizations that hold a process-centric view treat BPM as an ongoing effort and an integral part of the ongoing management and operation of the organization.

11.5.1 Change Scope

Business analysts working within the BPM discipline may address a single process with limited scope or they may address all of the processes in the organization. Business analysts frequently focus on how the processes of an organization can be changed in order to improve and meet the objectives of the organization.

BPM life cycles generally include the following activities:

Designing: the identification of processes and definition of their current state (as-is) and determining how we get to the future state (to-be). The gap between these states may be used to specify stakeholders’ expectations of how the business should be run.
Modelling: the graphical representation of the process that documents the process as well as comparing current state (as-is) and future state (to-be). This phase of the BPM life cycle provides input to requirements and solution design specification, as well as analyzing their potential value. Simulation may use quantitative data so that the potential value of variations on the process can be analyzed and compared.
Execution and Monitoring: provides the same type of input as modelling but in terms of the actual execution of processes. The data collected as a result of the actual business process flow is very reliable and objective which makes it a very strong asset in analyzing value and recommending alternatives for design improvement.
Optimizing: the act of ongoing repetition or iteration of the previous phases. The results of business process execution and monitoring are utilized to modify models and designs so that all inefficiencies are removed and more value is added. Optimization may be a source of requirements and solution design definitions that comes directly from stakeholders and the user community. Optimization of processes is also a good way to demonstrate the value of a suggested solution modification, and justify process and product improvement initiatives.

.1 Breadth of Change

The goal of BPM is to ensure that value delivery is optimized across end-to-end processes. A comprehensive BPM initiative can span the entire enterprise. A single BPM initiative can make an organization become more process-centric by providing insights into its processes. An organization's processes define what the organization does and how it does it. Possessing a thorough understanding of its processes allows stakeholders to adjust these processes to meet the evolving needs of both the organization and its customers.

Individual initiatives may improve specific processes and sub-processes. Breaking down larger, more complex processes into smaller chunks (sub-processes) allows business analysts to better understand what each process is doing and how to optimize them.

.2 Depth of Change

Business analysts use BPM frameworks to facilitate the analysis and deep understanding of the organization's processes. BPM frameworks are sets or descriptions of processes for a generic organization, specific industry, professional area, or type of value stream. BPM frameworks define particular levels of processes throughout the organization's process architecture.

As an example, business analysts perform supply chain analysis as a means of evaluating specific processes in an organization. Analysis of the supply chain is frequently conducted by decomposing group-level processes into individual sub- components and then decomposing these down to individuals performing specific tasks.

Business analysts involved with business process management are frequently engaged in continuous improvement activities as they are often the ones most familiar with BPM.

.3 Value and Solutions Delivered

The goal of BPM is to improve operational performance (effectiveness, efficiency, adaptability, and quality) and to reduce costs and risks. Business analysts frequently consider transparency into processes and operations as a common core value of BPM initiatives. Transparency into processes and operations provides decision makers a clear view of the operational consequences of previous process related decisions. Business analysis efforts frequently begin with the identification of the business need of the customers. Needs are generally referred to as BPM drivers. BPM drivers include:

cost reduction initiatives,
increase in quality,
increase in productivity,
emerging competition,
risk management,
compliance initiatives,
next generation process automation,
core system implementation,
innovation and growth,
post merger and acquisition rationalization,
standardization initiatives,
major transformation programs,
establishment of a BPM Centre of Excellence,
increased agility, and
speed or faster processes.

.4 Delivery Approach

The delivery approach for BPM initiatives across organizations ranges from a set of tactical methods focused on improving individual processes to a management discipline that touches all the processes in an organization. The main purpose of process transformation is to help organizations identify, prioritize, and optimize their business processes to deliver value to stakeholders.

Organizations conduct periodic assessments of key processes and engage in ongoing continuous improvement to achieve and sustain process excellence. The success of BPM can be measured by how well the BPM initiative aligns to the objectives set for BPM in the organization.

There are several mechanisms that can be used to implement BPM

Business process re-engineering: methods that aim for major process redesign across the enterprise.
Evolutionary forms of change: methods that have overall objectives set for the process and then individual changes aimed at bringing sub- processes in line with those goals are implemented.
Substantial discovery: methods are used when organizational processes are undefined or if the documented version of the process is substantially different from the actual process in use. Substantial discovery is about revealing actual processes and is a method for organizational analysis.
Process benchmarking: compares an organization's business processes and performance metrics to industry best practices. Dimensions typically measured are quality, time, and cost.
Specialized BPMS applications: are designed to support BPM initiatives and execute the process models directly. These applications are tools that automate BPM activities. Often the organization's processes are required to be changed to match the automated approach.

Process improvement approaches can be categorized in terms of their point of origin and whether their solutions are primarily organizational (people-based) or technological (IT-based). Organizations can better understand the process improvement methodology, as mentioned in the previous paragraph, to apply based on the following organizing principles:

Top-down: initiatives are typically orchestrated from a central point of control by senior management and have organization spanning implications, targeted at end-to-end processes or major parts of the business.
Bottom-up: initiatives are typically tactical approaches to improving individual processes and departmental workflows, or sub-processes in smaller parts of the organization.
People-centric: initiatives where the principal change is to the activities and workflows in an organization.
IT-centric: initiatives frequently focused on process automation.

.5 Major Assumptions

The following is a list of major assumptions from the BPM discipline:

Processes are generally supported by information technology systems, but the development of those systems is not covered by most BPM methods. Business analysts may suggest additional business requirements based on existing IT systems.
BPM initiatives have senior management support. The business analyst may be involved in suggesting additional business requirements based on organizational strategies.
BPM systems require a tight integration with organizational strategy but most methods do not tackle the development of strategy which is outside the scope of this perspective.
BPM initiatives are cross-functional and end-to-end in the organization.

11.5.2 Business Analysis Scope

.1 Change Sponsor

Enterprise-wide BPM initiatives are typically started by executives focusing on value and outcomes and then linking these strategic objectives to the corresponding business processes which most closely support the objectives.

BPM initiatives are frequently triggered by an external situation which generates a business need. Enterprise business analysis practices are applied to develop a business case for a BPM initiative.

Process improvements are typically initiated or at least managed by a process manager at any level of the organization. The scope of the process or sub-process usually determines the authority of the process manager.

.2 Change Targets

The possible primary change targets for a BPM initiative include:

Customer: the key stakeholder in any BPM initiative. The principal focus is on the external customer but internal customers are also considered. Since BPM is customer-centric by nature, the customer is part of BPM initiatives in order to validate the effectiveness of the process change. Involving the customer early in the initiative minimizes the risk of failure by ensuring the goals of process delivery are aligned to the customer’s expectations.
Regulator: a stakeholder in any BPM initiative due to evolving requirements towards compliance and risk management by some organizations. Regulators may trigger a BPM initiative due to changes in regulations on such concerns as public safety, transparency, equal opportunity, and non-discrimination.
Process Owner: the key stakeholder in any BPM initiative and has the responsibility and authority to make the final decision regarding any changes to the affected processes. The process owner is also responsible for measuring the process performance.
Process Participants: stakeholders who directly or indirectly participate in the process being evaluated. These participants define the activities of the process. In order to ensure that the interests of process participants are met, the process owner engages them during design of the process.
Project Manager: manages the BPM initiative and is accountable for its delivery and driving decisions. The project manager works with a team including process analysts, process owners, and process designers. The project manager is responsible for planning, scheduling, communication management, change management, and risk management.
Implementation Team: converts the plans of the BPM initiative into functioning business processes. The success of a BPM initiative is the ability to integrate all the functions that meet the needs of the customer.

.3 Business Analysis Position

Business analysts working within the discipline of business process management may assume a variety of roles:

Process Architect: responsible for modelling, analyzing, deploying, monitoring, and continuously improving business processes. A process architect knows how to design business processes and how to enhance those processes either manually or for automated business process execution on a BPM platform. Process architects address and guide the decisions around what process knowledge, methodology, and technology is required to meet the objectives of the organization with respect to a particular BPM initiative. Process architects enhance and transform business processes into technically enhanced and executable process templates. Depending on the BPM initiative, process architects may be focused on managing business performance or on mapping technology to business operations. Process architects are responsible for developing and maintaining standards and the repository of reference models for products and services, business processes, key performance indicators (KPIs), and critical success factors (CSF). They are engaged in process analysis and transformation initiatives.
Process Analyst/Designer: has detailed process knowledge, skills, and interest. They are experts in documenting and understanding process design along with performance trends. Process analysts/designers have an interest in business process optimization to increase overall business performance. This goal requires an understanding of the detailed process and includes performing the necessary analysis for process optimization. They perform analysis and assessment of as-is processes, evaluate alternate process design options, and make recommendations for change based on various frameworks.
Process Modeller: captures and documents business (both the as-is and to-be) processes. The process modeller is frequently a process analyst working to document a process for implementation or support by an information technology system.

The process analyst/designer and the process modeller functions frequently reside within a single position.

Figure 11.5.1: Business Analyst Roles in a BPM Initiative

.4 Business Analysis Outcomes

Outcomes for business analysts working within the discipline of business process management include:

business process models,
business rules,
process performance measures,
business decisions, and
process performance assessment.

Business Process Models

Business process models start at the highest level as an end-to-end model of the whole process and can become as specific as modelling specific work flow. Business process models serve as both an output and a starting point for the analysis of the process. They are divided into current state (as-is) and future state (to-be) models. Current state models portray the process as it currently functions, without any improvements. The future state model envisions what the process would look like if all improvement options are incorporated. The benefit of developing the current state model is to justify the investment in the process by enabling the business analyst to measure the effect of the process improvements and prioritize changes to the process. Transition models describe the interim states required to move from the current state process to the future state process.

Business Rules

Business rules guide business processes and are intended to assert business structure or control the behaviour of business. Business rules are identified during requirements elicitation and process analysis and often focus on business calculations, access control issues, and policies of an organization. Classifying business rules can help decide how they will be best implemented. Business rules analysis provides insight into how the business functions and how the processes contribute to meeting the business' goals and objectives. Business analysts analyze the reasons for the existence of a business rule and study its impact on the business process before improving or redesigning it. Business rules may, where appropriate, be mapped to individual processes through the decisions they influence unless they are related strictly to the performance of the process.

Process Performance Measures

Process performance measures are parameters that are used to identify process improvement opportunities. Process performance measures are defined and deployed to ensure that processes are aligned to the business needs and strategic objectives of the organization. Process performance measures can address many aspects of a process including quality, time, cost, agility, efficiency, effectiveness, responsiveness, adaptability, flexibility, customer satisfaction, velocity, variability, visibility, variety, rework, and volume. Many of the process performance measures seek to measure the effectiveness and efficiency of the process as well as the degree to which the process goals are achieved. When deployed across the business, process performance measures can indicate the maturity level of process culture in an organization and generate a shared understanding of process performance across an organization. Performance measures are keys to defining service level agreements where an organization provides service to their customers.

Business Decisions

Business decisions are a specific kind of task or activity in a business process that determine which of a set of options will be acted upon by the process. Decisions must be made (using a task or activity) and then acted upon (often with a gateway or branch in the process). Decisions may be manual or automated, are modelled independently, and are best described using business rules. Decision rules, often implemented through a business rules engine, allow these business decisions to be automated.

Process Performance Assessment

The success of any BPM initiative rests on the intention and capability to continuously measure and monitor the performance of targeted business processes. The assessment can be static and be documented with assessment reports and scorecards, or dynamic and be delivered through dashboards. It provides necessary information to decision makers in an organization to redeploy and adjust resources in order to meet process performance goals.

11.5.3 Frameworks, Methodologies, and Techniques

.1 Frameworks

The following table lists frameworks that are commonly used within the discipline of business process management.

BPM Frameworks

Framework	Brief description
ACCORD	A methodological framework that maps current state models, as well as unstructured data, to conceptual models.
Enhanced Telecommunications Operations Map (eTOM)	A hierarchical framework developed for the telecommunications industry that has been adopted by other service-oriented industries.
Governments Strategic Reference Model (GSRM)	A life cycle framework that provides generic government processes and patterns for each stage of organizational maturity.
Model based and Integrated Process Improvement (MIPI)	A cyclical framework whose steps include assess readiness, outline process under review, detail data collection, form model of current process, assess and redesign process, implement improved process, and review process.
Process Classification Framework(PCF)	A classification framework that details processes and is used for benchmarking and performance measurement.

.2 Methodologies

The following table lists methodologies that are commonly used within the discipline of business process management.

Table 11.5.1: BPM Methodologies

Methodology	Brief description
Adaptive Case Management (ACM)	A method used when processes are not fixed or static in nature, and have a lot of human interaction. An ACM process may be different each time it is performed.
Business Process Re- engineering (BPR)	The fundamental rethinking and redesigning of business processes to generate improvements in critical performance measures, such as cost, quality, service, and speed.
Continuous Improvement (CI)	The ongoing monitoring and adjustment of existing processes to bring them closer to goals or performance targets. This represents a permanent commitment of the organization to change and must be an important part of its culture.
Lean	A continuous improvement methodology that focuses on the elimination of waste in a process, defined as work for which the customer of the process will not pay.
Six Sigma	A continuous improvement methodology that focuses on the elimination of variations in the outcome of a process. It is statistically oriented and performance data centric.
Theory Of Constraints (TOC)	A methodology that holds the performance of an organization can be optimized by managing three variables: the throughput of a process, operational expense to produce that throughput, and the inventory of products. The performance of a process is dominated by one key constraint at any given time, and the process can only be optimized by improving the performance of that constraint.

11.5.2.2.2 Table 11.5.1: BPM Methodologies (Continued)

Methodology

Brief description

Total Quality

Management (TQM)

A management philosophy that holds to the underlying principle that the processes of the organization should provide the customer and stakeholders, both internal and external, with the highest quality products and services, and that these products or services meet or exceed the customers' and stakeholders' expectations.

.3 Techniques

The following table lists techniques, not included in the Techniques chapter of the BABOK® Guide and are commonly used within the discipline of BPM.

Table 11.5.2: BPM Techniques

Technique	Brief Description
Cost Analysis	A list of the cost per activity totaled to show the detailed cost of the process and is used frequently by businesses to gain an understanding and appreciation of the cost associated with a product or service. Cost analysis is also known as activity based costing.
Critical to Quality (CTQ)	A set of diagrams, in the form of trees, that assist in aligning process improvement efforts to customer requirements. CTQ is a technique used in Six Sigma, but is not exclusive to Six Sigma.
Cycle-time Analysis	An analysis of the time each activity takes within the process. Cycle-time analysis is also known as a duration analysis.
Define Measure Analyze Design Verify (DMADV )	A data-driven structured roadmap used to develop new or improve existing processes. DMADV is a technique used in Six Sigma, but is not exclusive to Six Sigma.
Define Measure Analyze Improve Control (DMAIC)	A data-driven structured roadmap used to improve processes. DMAIC is a technique used in Six Sigma, but is not exclusive to Six Sigma.
Drum-Buffer-Rope (DBR)	A method used to ensure that the system constraint always functions at the maximum possible output, by ensuring that there is a sufficient buffer of materials just prior to the constraint to keep it continuously busy. It can be used in BPM to ensure process efficiency.
Failure Mode and Effect Analysis (FMEA)	A systematic method of investigating process failures and defects, and identifying potential causes. FMEA is a technique that assists in locating problems in the as-is process and correcting them when developing the to-be processes.
House of Quality/ Voice of Customer	A matrix relating customer desires and product characteristics to the capabilities of an organization. It is a technique that could be used in developing the to-be processes.
Inputs, Guide, Outputs, Enablers (IGOE)	A diagram that describes the context of a process, by listing the inputs and outputs of the process, the guides that are used to inform the execution of the process, and the supporting tools and information required for the process.
Kaizen Event	A focused, rapid effort to improve value delivery in one specific activity or sub-process.
Process Simulation	A model of the process and a set of randomized variables to allow for multiple variations of a process to be assessed and develop an estimate of their performance under actual conditions.
Suppliers Inputs Process Outputs Customers (SIPOC)	A table that summarizes inputs and outputs from multiple processes. Also known as COPIS, which is simply SIPOC spelled backwards.
Theory of Constraints (TOC) Thinking Processes	A set of logical cause-and-effect models used to diagnose conflicts, identify the root causes of problems, and define future states of a system that successfully resolve those root causes. TOC thinking processes is a technique that assists in locating problems in the as-is process and correcting them when developing the to-be processes.
Value Added Analysis	Looks at the benefit to the customer added at each step of a process to identify opportunities for improvement.
Value Stream Analysis	Used to assess the value added by each functional area of a business to the customer, as part of an end-to-end process.
Who What When Where Why (5Ws)	A set of questions that form the foundation for basic information gathering. The 5Ws may also include How added to become the 5Ws and a H.

11.5.4 Underlying Competencies

Business analysts working within the discipline of business process management are required to challenge the status quo, dig to understand the root causes of a problem, assess why things are being done in a particular way, and encourage subject matter experts (SMEs) to consider new ideas and approaches to make their processes more efficient and effective. They are also required to understand, articulate, and move back and forth between internal and external views of the processes under analysis.

Due to the effects that changes to processes have on the working habits of individuals, interaction skills are valuable in a BPM initiative. Business analysts frequently negotiate and arbitrate between individuals with different opinions, and expose and resolve conflicts between different groups within the organization. The business analyst is a neutral and independent facilitator of the change.

BPM initiatives are likely to involve all levels of the organization and the business analyst is required to communicate across organizational boundaries as well as outside the organization.

11.5.5 Impact on Knowledge Areas

This section explains how specific business analysis practices within business process management are mapped to business analysis tasks and practices as defined by the BABOK® Guide. This section also describes how each knowledge area is applied or modified within the business process management discipline.

Each knowledge area lists techniques relevant to a business process management perspective. BABOK® Guide techniques are found in the Techniques chapter of the BABOK® Guide. Other business analysis techniques are not found in the chapter, but are considered to be particularly useful to business analysts working in the discipline of business process management. This is not intended to be an exhaustive list of techniques but rather to highlight the types of techniques used by business analysts while performing the tasks within the knowledge area.

.1 Business Analysis Planning and Monitoring

Progressive elaboration is common in the planning of BPM initiatives due to the fact that the amount of information available for full planning may be limited in the initial stages. BPM initiatives involve continuous improvement activities, and a common cause of failure of BPM initiatives is the failure to plan for ongoing monitoring of the effect of changes to the process. In BPM initiatives, the initial focus of business analysis work is on analyzing and improving the business process before looking at the technology used to support the process, and any changes that might be required to software applications or work procedures.

BABOK® Guide Techniques

Other Business Analysis Techniques

Inputs, Guide, Outputs, Enablers (IGOE)

.2 Elicitation and Collaboration

For the BPM initiative to be successful, the scope of the initiative and the scope of the affected process must be defined and understood.

Process modelling and stakeholder analysis are generally utilized during the elicitation phase of a BPM initiative. During elicitation, the business analyst focuses on cause and effect of both changing existing processes and keeping the processes as they are through the elicitation and collaboration effort. As an existing process is changed, the effect of any process improvements identified on the organization, people, and technology are considered. Process maps are an important tool to drive elicitation in BPM initiatives and stakeholders are frequently consulted during their development. Effective elicitation and collaboration is critical in process modelling analysis and design work.

Process changes can have significant impacts across the organization, so managing stakeholders and their expectations is particularly critical. Without effective stakeholder management, process changes may not be successfully implemented or the changes may not meet the organization's goals and objectives.

BABOK® Guide Techniques

Other Business Analysis Techniques

House of Quality/Voice of Customer

.3 Requirements Life Cycle Management

BPM is a set of approaches that focus on ways to deliver value across multiple functional areas through a process-centric lens. Delivering additional value is often related to deliberately undertaking change but could also result from an ad hoc request or review of processes. The impact of BPM activities on requirements life cycle management is significant as it can drive out business requirements resulting in new design, coding, implementation, and post-implementation changes. It is the responsibility of the business analyst to maintain this connection and ensure that communication is effectively conducted with stakeholders and process owners who are the ultimate decision makers when it is about processes, change, and supporting solutions.

The documentation of business processes is available to all stakeholders as it is to be used in the daily operation of the business. If the process is automated through a BPMS, the representation of the process may be directly executable.

BABOK® Guide Techniques

Other Business Analysis Techniques

none

.4 Strategy Analysis

In a BPM context, strategy analysis involves understanding the role the process plays in an enterprise value chain. At a minimum, any process that interacts with the processes affected by the initiative must be considered.

The current state is likely to be described by the as-is value chain and the current performance measures for the business process. The future state will be described by the to-be value chain and target performance measures. Continuous improvement methods may simply focus on the performance measures to determine the strategy. The change strategy will involve the identification of possible process changes.

BABOK® Guide Techniques

Other Business Analysis Techniques

Drum-Buffer-Rope
House of Quality/Voice of Customer
Inputs, Guide, Outputs, Enablers (IGOE)
TOC Thinking Processes

.5 Requirements Analysis and Design Definition

Requirements analysis and design definition will focus on defining the to-be process model. The requirements architecture is likely to include the process model, associated business rules and decisions, information requirements, and the organizational structure. Solution options typically include changes to IT needed to support the process, outsourcing of aspects of the process, and similar changes.

BABOK® Guide Techniques

Other Business Analysis Techniques

Kaizen Event
Process Simulation

.6 Solution Evaluation

Solution evaluation typically occurs repeatedly during BPM initiatives in order to assess the performance of the business process. As processes are evaluated for different scenarios, they can be refined and the results are monitored. Solution evaluation tasks provide insight into the understanding of the impact of process improvements and the value delivered by business process change. The solution may also involve process mining which uses such techniques as audit trails or transaction logs to obtain process details.

The analyze solution performance task is performed to understand the differences between potential value and actual value. This analysis is performed to discover why there is a variance between potential and actual value, to determine if a solution can perform better or realize more value. The evaluation examines opportunities or constraints of the implemented solution, how it satisfies needs, or how it could be improved. This may trigger further optimization of the process and a repeat of the BPM life cycle.