Professional Documents
Culture Documents
Thinking in Processes
Thinking in Processes
Peter Matthijssen
Third Edition
Peter Matthijssen
The author is a consultant and trainer at BiZZdesign
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Copyright © 2013, BiZZdesign
All rights reserved. No part of this book may be reproduced or utilized in any form or by any means,
electronic or mechanical, including photocopying, recording or by any information storage and re-
trieval system, without permission in writing from the publisher.
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The Netherlands
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ISBN: 978-90-79240-10-4
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Acknowledgments
I would like to thank the following persons for their helpful support, insightful comments and
contribution to this book: Monica Czarnecki, Kevin Drew, Henry Franken Alex Hendriks,
Rob Kroese, Jorgen Mellink and Roderick Schreuder.
We participate in international research and open innovation. BiZZdesign supports open standards
and is affiliated with The Open Group (TOGAF™, Archimate®) and the BPM forum.
The approaches and insights of this book are partly inspired by a range of ideas of Jeroen de Groot,
managing partner at Process Express.
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“Many organizations are successful with Business Process Management. However, they often st-
ruggle with the BPM terms, techniques and tools. This book helps by giving an overview of: What
is BPM? Why is it powerful? How do you use BPM? This is interesting for people directly involved
with BPM, but is also very useful for anyone interested in the basics of BPM. A must read!”
Jeremy Hall
Managing Director, IRM UK Strategic IT Training Ltd
“You started reading this book ‘Thinking in processes’. Are you curious or afraid of what will happen
to you? I ask this question, because it is my experience that the majority of people have negative
associations with processes. Surely you can recall examples of underperforming processes that
you have come across.
The fact that you started reading this book is a good thing. I recommend you to also read the rest
of the book and discover what ‘Thinking in processes’ can do for you and your organization. This
book gives a clear and simple overview of different aspects of business processes. It will help you
to recognize, control and improve processes. A good understanding of business processes will
remove any negative associations. It will enable you to establish good performing processes and
think positively toward processes.”
Frits Bussemaker
Founder BPM-Forum the Netherlands
“Managers pay attention! There are many good books about Business Process Management, if
you have enough time to read them. This book is a welcome exception, because it will help you
to understand the essence of BPM in a short amount of time. Managing is all about steering the
organization, so also steering the processes. What is BPM, why is it important and how can you
get started?”
Ton Mulders
Vice President ABN AMRO Bank N.V.
Lean Six Sigma Master Black belt
Inhoudsopgave
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Table of contents
Foreword................................................................................................................ 11
Introduction........................................................................................................... 13
Reading Guide....................................................................................................... 14
2.1 Introduction............................................................................................................. 43
2.2 When to do process control?.................................................................................. 44
2.3 Approach for Process Control................................................................................. 45
2.4 Getting started with process control........................................................................ 55
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Part 3 Process Improvement.......................................................................................... 57
3.1 Introduction............................................................................................................. 59
3.2 When to improve processes?................................................................................. 60
3.3 Methods for process improvement.......................................................................... 61
3.4 Best practice approach process improvement........................................................ 66
3.5 Getting started with process improvement.............................................................. 72
4.1 Introduction............................................................................................................. 75
4.2 When should we design processes?...................................................................... 76
4.3 Overview of the BPE method for process design................................................... 77
4.4 Approach for process design.................................................................................. 80
4.5 COPAFIJTH-broad design...................................................................................... 84
4.6 Getting started with process design........................................................................ 85
References............................................................................................................. 87
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Foreword
When I started my journey in Business Process Management in 1990, I was an Industrial Engineer
who had spent a lot of time in business and information technology organizations trying to translate
business and operational challenges into business solutions enabled by a combination of techno-
logical and human capabilities. Until the term business process came along I did not have a name
for what I did. I just knew that looking at the work made sense, it could be done logically and it bore
results. In the twenty years since then, I have been drawn to people, ideas and approaches that
were straight forward enough to also pass the common sense test. Luckily, in the past couple of
years I met Peter Matthijssen who passed this test with flying colours. Peter is a confident yet unas-
suming gentleman who is not distracted by unnecessary and superfluous fads and management
hyperbole that is so prevalent in many disciplines today. He is a straight through thinker who sees
the essence of what is important and is focused on the goal. He is as the title of this book says: a
process thinker. That’s what this book is all about.
Peter’s writing is devoid of extra bells and whistles that many authors have become seduced by
and in doing so have made process control and improvement so convoluted as to become un-
workable. Peter, instead, has kept it to the core issues that are really needed to conduct process
projects that can succeed. In my experience, when process improvements do not deliver on the
promises made in the business case or the projects themselves self-destruct, it is not because we
misapplied a complex modeling notation properly or did not follow an analytical technique to the
letter. It is almost invariably because something fundamental was misunderstood or ignored. That
is the message that this book brings: get the foundation right.
This book is not aimed at Business Process Management as an executive management discipline
from an enterprise perspective with performance scorecards, business governance and portfolio
management at its centre. It is also not focused on technologies to automate workflow navigation.
It is also not about complex notations for modeling and the toolkits they demand. It is simply about
how newcomers to process work, managers in business, and process professionals alike can stick
to what works and follow some solid guidelines based on experience and the essential elements of
Lean Thinking, Six Sigma and other proven approaches applied such that the best components of
each are used as the right tools for the right job.
I especially like the articulation of the various approaches for each of Process Control, Process
Improvement and Process Design, each of which has its own chapter. The identification of the
problem type is a prerequisite that is discussed to help you pick the pattern best for your particular
challenge. Each approach rests on the most important part of the book: Thinking in Process. Me-
thodologies, techniques and tools by themselves are doomed to failure without the thinking well
understood. Peter has recognized this. This first part is a great introduction for anyone who wants
to learn more about processes.
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If you are new to process work this book is certain to give you a foundation for understanding what
the buzz has been and still is about. If you are a process improvement practitioner there are sets of
simple steps to guide you. If you are a manager you will discover what is needed for your processes
to become better, faster and cheaper using a straightforward approach that works.
I thank Peter for this contribution. It will add tremendous value to the ever growing body of business
process knowledge.
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Introduction
Processes are everywhere. There are processes in nature that cause earthquakes, volcanic erup-
tions or climate change. Even at home we deal with processes such as doing laundry, assembling
an IKEA cabinet or preparing a meal.
Processes also exist within organizations. Everything that happens there is part of a process or
several processes. The success of an organization is largely based on the way it handles its pro-
cesses.
The handling of processes is known as: Business Process Management (BPM). As a term, BPM
exists for about 10 years, but this definitely doesn’t mean that before that there weren’t processes
or that one did not know how to handle them. Processes have always existed. The manufacturing
of VOC ships or the building of pyramids are examples of successful processes. In this book we will
further explore the specialism of BPM.
Many books have been written on the subject of BPM. Most, however, focus on specific aspects in
this field, making it difficult to get a good overall picture of BPM. It also appears that many people
have difficulty setting up BPM within their organization: where do you start? These issues are high-
lighted in this book. The following questions will be discussed:
• What is the power of thinking in processes?
• What is BPM?
• What are the basic principles of BPM?
• Which levels can we differentiate within BPM?
• How can you get started with BPM in a practical and efficient way?
This book requires no prior knowledge of BPM. For readers that are relatively new to BPM, the
terms, methods and techniques will be explained. Also for people that already work with BPM, the
presented overview will be interesting.
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Reading Guide
This book is split into four parts. Part 1 is about ‘process thinking’ and ‘process insight’. Here the
process-view is introduced, a powerful way to look at organizations. This part of the book also con-
nects processes to diverse aspects that we come across in our daily work. The basic building blocks
of process management are covered and form the foundation for the following parts of the book.
Innovate
Impact on organization
Improve
Control
Insight
Impact on result
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Part 1: Thinking in Processes
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Part 1 - Thinking in Processes
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Part 1 - Thinking in Processes
All organizations have processes. However, the term ‘process’ is not used within every part of an
organization. For example, if we take a look at the agenda of upper management, then one would
seldom come across the word process.
In this part we will go into more detail on ‘thinking in processes’. The first thing we need for this is
a definition of process.
“...a structured, measured set of activities designed to produce a specific output for a particular
customer or market” [Davenport, 1993]
This definition implies that processes are about activities that are executed, where output is created
for a customer. But where does a process begin?
“... a business process as a collection of activities that takes one or more kinds of input and creates
an output that is of value to the customer” [Hammer and Champy, 1993]
The concept of value is essential. The result of a process is valuable to the customer.
“A process is a set of activities that occur between the request for a product or service and the
delivery thereof. The following applies:
• A process has a specific (business)objective
• A process always runs from customer to customer
• A process always runs from trigger to result
• A process can take place between various departments and sometimes even various
organizations”
[BPE handbook, BiZZdesign]
The customer is crucial in the process. The process begins (trigger) with the customer and ends
(result) with the customer. This customer can also be an internal customer, for example for in-
ternal helpdesk processes. This from-customer-to-customer principle is quite innovative for many
organizations. It gives them the possibility to take a look at their company from a new perspective:
the process view.
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Part 1 - Thinking in Processes
Profit
HRM FINANCIËN
MARKETING
If we take a closer look at these departments then we see people or systems at work fulfilling
tasks. This view on organizations is called a vertical view, or task oriented view. The figure below
illustrates this.
Organization
Staff
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Part 1 - Thinking in Processes
There is also an alternative way to look at organizations: not from a chosen organizational structure,
but instead from the processes that are executed.
In the definition of process it is previously stated that a process runs from customer to customer.
These customers trigger processes, for example at the purchasing department, which cause vari-
ous activities to be performed in order. These activities are executed by other departments or even
other organizations. Eventually the result of the process is given to the customer.
In the figure below the alternative process view is illustrated. The customer triggers the process,
after which the process runs horizontally through the organization.
Organization
Staff
People are usually not used to the horizontal process view on organizations. For example, if
purchasing processes are being discussed then they are being run by the purchasing department.
From the (horizontal) point of view above, the purchasing process is only a subprocess that is a
part of a larger end-to-end process. After the purchasing process, other subprocesses will always
follow such as distribution and sales. By linking all subprocesses together an end-to-end process is
created, from customer to customer.
For many people, it can be challenging to think in end-to-end processes. It is easier to think in tasks
and departments. Within organizations management usually also occurs in a vertical fashion, as
illustrated in the previously mentioned organigram.
A process view on the organization, however, has many advantages. The quality that is delivered
to a customer in a process is dependent on the quality of all executed tasks in the process. Often
issues or bottlenecks lie between the tasks, systems and departments. By looking at the proces-
ses horizontally, various tasks in the process can be seen in relation to each other, from customer
to customer. Tasks are not isolated; something always lies before and something always happens
after. Also the customer, for whom we are ultimately doing the process for, is suddenly visible within
all tasks in the chain.
Thus the process view has advantages. Processes form a good basis for optimization in our orga-
nizations in terms of efficiency, effectiveness and quality. So, how do you put this into practice? The
field of BPM helps you to get a grip on processes.
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Part 1 - Thinking in Processes
BPM, in this context, of course stands for business process management. Let’s take a look at the
term BPM word for word:
Process: A process is a set of activities that occurs between the request for a product or service and
the delivery thereof [see definition process]
“The set of activities assuming the usage of specific methods, techniques and software in order
to plan, control, analyze, describe, model, implement, execute, maintain and change/ improve the
independent process steps and the business processes as a whole” [BPM glossary 2009]
Optimizing performance is essential for BPM. It should not be seen as a goal in itself. It is a means
that helps organizations to effectively and efficiently manage and improve performance such as
quality, speed, and flexibility. In order to achieve this, methods and techniques have been develo-
ped in the field of BPM. These techniques are directed at processes.
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Part 1 - Thinking in Processes
Many organizations are not or only barely involved in processes. To manage or improve perfor-
mance they make use of other fields such as:
• Risk management
• Quality Improvement
• Automation
• Project management
Often these fields are organized separately. Diverse departments focus on one aspect. However, if
you take a closer look at the fields, they all deal with processes!
Risk management focuses on risks and possible control measures in the process (Internal control).
Quality assurance focuses on the delivery of the quality of our processes for the customer. Automa-
tion focuses on the IT tools that support the process. Projects focus on improving the performance
of processes.
Processes are thus the common denominator of many of the things that we are involved in within
our organizations. BPM focuses not on only one of these disciplines, but on processes. BPM is
therefore an umbrella discipline that brings other disciplines together. The “process flower” below
illustrates this.
Software
design
Quality Processes
management
Projects
Working
instructions
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Part 1 - Thinking in Processes
What determines a successful pit-stop? Of course it has to do with things such as good tools,
enough manpower, good preparation, the right agreements and optimal training. These are all es-
sential aspects needed for a successful pit-stop. Yet an optimal pit-stop needs something more. The
last tenths of those seconds that can make the difference between winning or losing the race, are
won through team work, trust and the will to win.
From the example above we can distinguish between two types of success factors: technical fac-
tors (ratio) and human factors. For optimal performance both are necessary.
Teamspirit
Motivation
Cooperation
Will to win
Trust
Technique
Tools
Planning
Fixed roles / tasks
Training
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Part 1 - Thinking in Processes
The approaches and techniques developed within BPM are primarily focused on technical aspects:
how can we optimally design and manage the process? It is, however, important to not forget the
human side of BPM. The outcome of processes is determined by a combination of rational and
emotional factors. Eventually it are the people that make a process successful!
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Part 1 - Thinking in Processes
Organizations are constantly being influenced by their surroundings such as the changing needs
of customers, competitor developments, technological developments and changing laws. Based
on these types of changes they determine their course. Which products or services will they offer?
Who will be the target group? Which prices will be set?
Aside from that, choices need to be made for the IT that is going to be implemented.
Because of the important role of IT, there can be a tendency to let IT lead the change. For example:
the competitor chose for ERP package X, so why shouldn’t we? In this case a situation unfolds
such as that described below. Certain IT solutions are chosen based on developments in the sur-
roundings of the organization. Secondly the IT directs the construction of processes. Procedures
are therefore adjusted to IT. But is this the best way to go?
Strategy
IT IT
Implementing IT is not always successful. Everyone knows the stories about implementation pro-
jects that turned out to be twice as expensive or took much longer to complete than planned. Not to
mention the implementation projects that downright fail and have to be withdrawn.
Michael Hammer did research in the 90’s on the success of ERP (Economic Resource Planning)
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Part 1 - Thinking in Processes
software implementations. He came to the conclusion that within his research group two sub-popu-
lations can be distinguished: one group is really successful and the other group failed to execute
the implementation. For the first group IT is a success for the organization. In the second group
implementation projects are terminated or the software does not fulfill the needs of the company.
Some companies even go bankrupt because of costly and faulty implementation endeavors. Rela-
tively few implementations fall between success and failure.
The ERP implementations in Hammer’s research are significant for large IT implementations in
general. If you look at the causes of failure of IT implementations, then it appears that it is generally
due to IT being the lead decision making element. First a technical solution is selected, and then
an attempt is made to put this in line with the processes of the organization. This can lead to big
problems.
Some processes determine the identity of the organization. This is something you cannot and
should not want to change simply because of new IT. IT, supporting primary processes that orga-
nizations want to distinguish themselves with from their competition, should be chosen carefully. IT
should not have a limiting effect on these processes. For other secondary processes, such as HRM
and finance, there may be more room for adjustments in the processes.
In the figure below, processes and IT are switched. This is how we like to see it. The design of the
processes is set from the business. Only after the process is set IT comes into the picture (drives).
The third arrow is an inspiration arrow. New technology can inspire the process and sometimes
even the business, leading to new designs.
Strategy
Inspire
IT IT
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Part 1 - Thinking in Processes
IGOE stands for: Input, Guides, Output and Enablers. These subjects also have their place in the
discipline of BPM. In the figure below the IGOE aspects are schematically illustrated, followed by
a short explanation.
Interactions with the external environment can occur in several ways. Examples of channels:
• Internet
• Telephone
• Shop
• Fax
• Post
• Social media
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Part 1 - Thinking in Processes
It is interesting to look at the various channels that are used for processes. The type of channel and
the amount of channels that are used for the input and output influence the behavior of the exter-
nal environment and therefore the performance of the process. Certain organizations choose, or
are forced, to use many channels. Government agencies for example are required to be available
per post and phone. These organizations have to adjust their processes to this (call center, postal
service). Other organizations choose to work only via one channel and block or discourage the use
of others. Examples are the many web shops of warehouses in industrial parks where orders can
only be placed via the internet. This allows the web shops to work with simpler and less expensive
processes than competitors.
Guides
Guides are the guidelines for the process. They determine which performance factors and/or design
requirements must comply with the process. Guides can be generic, focussing on things like qua-
lity and turnaround time. An example of a generic guide: ‘complaints should be dealt with within 6
weeks’. Generic guides can be made by management, but also by the imposed laws. Other guides
are much more specific: ‘claims exceeding $10,000 must be assessed by a senior employee before
a decision is made’. Specific guides are design choices of the organization.
Guides determine what our processes will look like. They help us in designing processes, but
can also be limiting. It is important to have a clear picture of the guides of a process to be able to
evaluate the performance and identify needed changes or improvements. In many organizations
guides are unclear or are impossible to cope with. An underlying reason for this is that guides are
often drawn up without having first identified the impact of this guide on the process. Therefore it
is good to be critical about the guides. This allows us maximum freedom to design or improve the
processes optimally.
Enablers
Enablers make it possible to execute a process. An example of a key enabler for processes is ICT.
Also, the employees from an organization are important enablers, recall the pit-stop discussed in
section 1.4. Machinery and infrastructure can also be seen as enablers of processes. Without ena-
blers, executing a process is impossible. Process performance is dependent on the enablers, also
known as the actors of the process.
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Part 1 - Thinking in Processes
Innovate
Impact on organization
Improve
Control
Insight
Impact on result
Figure 1.10: levels of BPM
Depending on the situation, the BPM activities will focus on one or more of these levels. The figure
above schematically shows these various levels. The axes illustrate the impact on the organization
(vertical axis) and the impact on the result (horizontal axis).
Process insight and controll initiatives have a low impact on the organization because it involves
daily work, not change. Process (re)design on the other hand has a great impact on the organiza-
tion because the entire design of the process (and organization) is being reconsidered. Process
improvement lies between process control and process design.
If we look at the impact on the result, the horizontal axis, we see a skewed distribution. It appears
that process insight and control have a relatively large impact on the results. This figure illustrates
that BPM isn’t only beneficial when undergoing drastic changes. Within process insight and control
a lot of results can be attained. This first part of this book aims at the basics of BPM, Insight. The
other levels of BPM will further be discussed in the upcoming sections of this book by providing
approaches and techniques.
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Part 1 - Thinking in Processes
Grip on risks
Many projects
Complex
Rising quality IT
norms
Rising
IT costs
Outsourcing
Flexibility Control
Cost
reduction
If we take a closer look at the abovementioned topics then we see that they actually have every-
thing to do with processes:
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Part 1 - Thinking in Processes
risks
M
an
yP
Grip on
ro
lex
jec
o mp
ts
C IT
Outs
ourc
ing
Process Control
Flexibility
R
IT isin
co g
g ms sts
i sin nor tion
R y
Cost
it
reduc
al
qu
Management, in fact, talks a lot about processes – they just use different words. The figure above
illustrates this. It is important to realize that it is possible to talk about processes without using the
word. In this way, the ‘BPM person’ can be at an advantage: try to speak a language with terms and
topics that appeal to management. The translation to process terms can then take place behind
the scenes.
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Part 1 - Thinking in Processes
However, if we take a look at the instruments of BPM, then process models are definitely impor-
tant. Models help us to get a grip on, and communicate about, a complex environment. There are
various ways to document processes: in text documents, tables and diagrams. Graphical models of
processes are the most accessible to people. Various suppliers deliver software that allows for the
visualization of processes. Aside from visualization, software sometimes also offers the possibility
to perform analyses on the modeled process.
Documenting processes must be done as clearly as possible. By consistently choosing one mode-
ling language and by following modeling guidelines, models can be interpreted more easily which
increases the acceptance. Examples of modeling languages are BPMN, Amber and Sqeme.
Why do we model processes? There could be various reasons for this. In section 1.7 four levels
of BPM were introduced: insight, control, improve and design. Process models can be useful at all
these levels. Models can provide insight in the working of processes. Also for process control it can
be valuable to capture information of (the execution of) processes. In part 2 we will go into more
detail about process modeling for process control.
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Part 1 - Thinking in Processes
Within process improvement or process design there is talk of change. Here too, process models
can offer support. Process models make it possible to perform analyses on the current process.
Where are the bottlenecks? New scenarios of the process can also be made. In this way it is pos-
sible to communicate about the different design options and to test the designs or to analyze them
before they are actually being implemented. Here we are speaking of a model based change. In
part 4 of this book we will go into more detail about model based change.
Organizations make a lot of process models. But what is actually a good process model? A good
model is ‘fit for use’. This might be a dull answer but it is the only right one. A process can be docu-
mented in a thousand different ways, varying in scope, level of detail, presentation, and relation to
the actors. Therefore there are many choices that a process designer has to make.
Eventually we make models to communicate with our target group. Therefore, make sure that the
model is easily communicated: clear language, not too much information and good structure.
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Part 1 - Thinking in Processes
Obviously this is a rough sketch. B and C organizations will also perform repetitive activities such
as sending out invoices. Also A organizations will carry out internal projects and might have an R&D
department. Yet many organizations have made strategic choices in which they focus on one of
these types or choose to split the company into several operating units.
Group A earn money by working as efficiently as possible to perform the repetitive process. The
process of this group is very predictable, but so are the processes of competitions. The challenge
is to be more efficient than the competition.
Group B has to deal with more uncertainty than group A as projects are always different. Group
B differentiates itself from its competition (efficient and effective) by dealing well with uncertainty:
good project management.
Group C looks for uncertainty. These organizations aim at developing something new and will
find new ways to explore this. In successful improvising organizations, the (creative) processes
are more effective rather than efficient. These organizations are able to develop something new
periodically.
If we look at the methods and techniques of BPM, then we see that most profit can be gained from
repetitive activities. For example, imagine that an activity can be ten percent more efficient (faster
and cheaper) due to a BPM improvement project. This BPM investment (in time and money) will be
worth more if the activity is carried out one hundred times a day rather than once a year.
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Part 1 - Thinking in Processes
Type A organizations will therefore most likely benefit from the application of BPM. Type B and C or-
ganizations should select their processes for which BPM is interesting. This may involve secondary
processes such as financial and HR processes, but also processes with high risks. For example, if
once every ten years a nuclear device needs to be replaced in a reactor, then the high risks may be
a good incentive to use BPM for a controlled execution of the process.
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Part 1 - Thinking in Processes
An Enterprise Architect does not focus on buildings, but on organizations. Organizations are com-
plex objects, in which many elements operate in conjunction. EA gives insight into these relation-
ships. Besides understanding the current situation, EA is a tool for managing changes: What does
our current architecture look like? What are the underlying strategic principles? Where do we want
to go? How can we get there?
Where architecture in organizations previously was a mainly technical and tactical affair (applica-
tion architecture, technical architecture) EA has added a business layer. Within this business layer,
several important aspects can be found:
• Products and services
• Target group
• Goals and guidelines
• Processes
• Organizational structure
The various business topics are presented in connection to each other. The connection to the
technical architecture is also added. In this way it is possible to analyze the impact of change on
different architectural layers. For example, when a network server is down. Which applications are
affected by this? Which processes use these applications? What products or services are suppor-
ted by these processes? Who are the customers?
The impact of change is also powerful in reverse. Suppose, due to a revised strategy, we want to
approach a new target group with new products. What do these products look like? Which proces-
ses can we (re)use? What processes should be redesigned? What ICT services are needed?
EA is very powerful. There is extensive literature available with more information about this topic.
For the context of this book I would like to address the following question: How does the discipline
of EA relate to BPM?
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Part 1 - Thinking in Processes
If we take a closer look at EA and BPM, then we see that many concepts overlap:
• The guidelines and objectives of BPM are called ‘Guides’ (IGOE)
• The organizational structure with roles are enablers of the process
• The applications are enablers of the process
• Processes have a central position
EA is a strategic instrument that helps organizations to direct. EA therefore is about the ‘what’ in
organizations – the direction:
• What is the target group?
• What are the products or services?
• What kind of processes do we need?
• What kind of ICT do we need?
Based on the ‘what’ from EA, BPM supports the ‘how’ in organizations with process design - the
blueprint:
• How do we design our processes?
• How do we design our ICT?
• How do we design our organization?
BPM is also about the performance of processes, from day to day (process control) – the
execution.
The figure below illustrates the collaboration between EA and BPM.
EA BPM
Directs by setting policies and Provides interpretation and specific
guidelines application of policies and guidelines
Communication
Cooperation
Integrated conceptual
framework, process,
Products, Roles
Both the ‘who and the ‘what’ are important in organizations. It is therefore essential that there is a
good collaboration between BPM and EA. Speaking in terms of IGOE: EA delivers the guides for
the process design. From the BPM experiences feedback is given to EA (inspire).
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Part 1 - Thinking in Processes
Our processes supply an output for the customer who expects a level of quality. In order to deliver
this quality various costs accrue within organizations.
We can distinguish between different types of costs:
• Prevention costs, such as costs for training and educating employees, certification,
designing process control and process improvement projects
• Inspection costs, such as performing quality controls and audits
• Correctional costs, such as performing repairs, downtime, handling complaints and loss
of goodwill
The figure below depicts a simplified process and where the various types of costs are made. The
correctional costs are also called the ‘hidden factory’. These are costs that an organization makes
because something went wrong. If all actions would run without errors (ultimate quality), then there
are no correctional costs, so there is no ‘hidden factory’. Maybe an interesting question: “How large
is the hidden factory in your organization?”
Fallout Complaint
Repair work handling
Hidden
factory
Correction costs
Inspection costs
Prevention costs
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Part 1 - Thinking in Processes
Research has been done on the relationship between the various previously mentioned types of
costs. Many organizations are reluctant to invest in prevention. This is tempting because it is not
immediately clear what the benefits of these investments are. However, when something does go
wrong then the correctional costs are often high. Especially when problems with the customer arise,
jeopardizing the image of the company, substantial material and immaterial damage can be expec-
ted. In response to these incidents usually checks or inspections are added to the process. The left
column of the chart below graphically depicts the costs of the above scenario.
Costs
Correction costs
Inspection costs
Prevention costs
BPM investments in prevention result in more grip on the processes. Less things go wrong, which
leads to less correctional costs. Moreover, because the performance indicators of the process are
clear (as a part of process control), monitoring (inspection) and managing are facilitated. The in-
spection fees eventually also decrease, as graphically shown in the right column of figure.
Based on the abovementioned information we can conclude that it pays off to invest in BPM.
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Part 1 - Thinking in Processes
1.13 Conclusion
In this first part of this book an introduction is given to process thinking and process management. A
process is the collection of all activities that take place between the request for a product or service
and the delivery thereof. Important here, is that processes run from customer to customer, often
through various departments. Corporations that are ‘vertically’ organized often find the ‘horizon-
tal view’ innovative. The discipline of process management centralizes processes and strives to
achieve optimal performance of these processes. It appears that many initiatives and activities in
our organizations have a lot to do with processes and process management (‘process flower’).
The success of a process is dependent on not only the process design, but also the surroundings
of the process. In this context, the IGOE aspects are taken into account: Input, Guides, Output &
Enablers. Besides that the motivation of people plays a crucial role. The performance of processes
are determined by a combination of technical and human aspects.
Process models form an important instrument for BPM, but process models are never a means to
an end. It is important to think carefully about the goals and target group of process models.
Is BPM for everyone? In principle it is – processes are, after all, everywhere. However, it’s the re-
petitive processes where BPM really reaches its full potential.
An increasing number of organizations use Enterprise Architecture (EA) combined with BPM. EA
focuses on the strategic direction of organizations whereas BPM concentrates on the design of
processes and organizations. Successful organizations make sure that BPM and EA work well
together: EA directs and BPM gives feedback.
We also took a closer look at the business case of BPM. BPM initiatives cost money and are there-
fore an investment. The hidden factory shows that it is a good investment for many organizations.
Through improving quality with BPM, money can be saved.
How should we get started with BPM? In this first part we focused on insight provided by BPM.
Also three additional levels of BPM were introduced: process control, process improvement, and
process design. These levels will be discussed in more detail in later parts of this book.
39
Part 1 - Thinking in Processes
40
Part 2 - Process Control
41
Part 2 - Process Control
42
Part 2 - Process Control
2.1 Introduction
In part 1 the various levels of BPM were introduced. With process control we don’t aim at change,
but at day-to-day work. Every day processes are performed, with a specific output, for some custo-
mer. Process control aims at the performance of processes we already have. The process control
tools and approaches make it possible to achieve relatively large results without having a big impact
on the organization.
Innovate
Impact on organization
Improve
Control
Insight
Impact on result
Figure 2.1: Levels of BPM
Many people link process control to AO (Administrative Organization), procedures and process
handbooks. Within organizations a lot of time is often put in creating these documents, which end
up in the bottom of a drawer or bookshelf. Once a year the dust is wiped away and the documents
are reviewed to see if everything is still up to date. Of course everything has to be in check for the
ISO control (or equivalent). However, this is NOT process control!
Process control is something the persons involved in a process are doing every day. It is about
responsibility, standardization and transparency. Process control leads to a good grip on processes,
quality and the organization.
This section will first discuss the question of ‘when to do process control?’ Isn’t it smarter to immedi-
ately improve processes or to start with a redesign project? After, a best practice approach for pro-
cess control will be presented. A seven step approach leading to optimally controlled processes.
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Part 2 - Process Control
Redesigning sounds nice. Without impeding on the current process, it is designed all over again
from scratch. However, the results of these redesign projects aren’t always as expected. Usually
errors still occur and much energy is lost in fine-tuning the newly designed process. Often, rede-
signing equates to flushing money down the toilet. After all, the current process exists for years,
harboring experience and knowledge. We don’t want to lose this!
Also, a redesign has a lot of impact on the organization, causing uncertainty amongst the staff.
Employees worry about changes and keeping their jobs.
If the performance of a process is under pressure it is often wise to first take a good look at this
current process. Problems find their cause more often in the execution of the process rather than in
the design of the process. Process control is not directed at change or redesign, but instead at the
management of processes:
Directly improving from a baseline that is not managed is often difficult and not smart. In order to im-
prove specific activities, it is important to first have insight in the content, context and performance
of a process. Process control supports this.
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Part 2 - Process Control
As a starting point for process identification first take stock of all the subprocesses from various de-
partments. This can be done with the employees directly working with the process. The scope from
individual employees is the basis of process identification. This scope is usually one or a few acti-
vities, which are triggered from another activity or the customer. Activities deliver a result. Between
these triggers and results one or more activities are performed within the involved department.
These are made unambiguous by combining the various ‘scopes’ of the employees. In this way it is
possible to gain insight in the subprocesses/departmental processes.
By organizing process identification sessions at various departments and combining the subpro-
cesses, the puzzle of end-to-end processes can further be solved. There are various creative tech-
niques that can be used in these sessions. The result of step one is that our processes are identified
and that the foundation for ‘thinking in processes’ is laid within the organization.
1) ‘Beter presteren met processen (2007), Rob Kroese, Jeroen de Groot, ISBN 978-90-809722-5-4’
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Part 2 - Process Control
results and performance of the process: the process owner. The organizational structure and con-
trolling insturments have to be laid out in such a way that process ownership works.
Option 1: Tilting the organizational structure. Whole departments are hereby arranged horizontally,
from customer to customer. In some cases this may be a good option, but it does have a large
impact on the organization.
Option 2: Preserve the vertical structure. Processes remain running across multiple departments.
However, each process is designated to a process owner. This means that for a specific process
the process owner is positioned hierarchically above the managers of other departments. Later we
will go into more detail about the practical functioning of this.
Option 2 sounds attractive, but who will become the process owner? The challenge here is to
choose someone that is high enough in the organization to be influential and low enough to be
involved in the day to day performance of the process. Indeed, by making the director the process
owner of all processes you have only implemented process ownership on paper; this director will
not have the interest, knowledge and time to respond to hick-ups in the process. Conversely, a team
leader may not be able to have influence over other department heads.
Objective assignment
A best practice in selecting a process owner is an objective assignment. Here the characteristics
are identified for which someone should be the process owner. Examples of these characteristics
are:
• Which department has the most contact with the customer?
• Which departments carry the greatest risks?
• Which department has the most costly activities?
Based on these rules, the process owners can be assigned. This can be achieved by working with
scores. An objective assignment prevents, often politically loaded, discussions about whether or not
someone should become process owner.
Organizational structure
Naming process ownership is step one, however getting it to work demands more from the orga-
nization. The organizational structure must become more flexible so that the process owner can
hierarchically slide up the organizational ladder when needed. This means that those having the
ownership role must connect extra competences and that escalation mechanisms need to be im-
plemented. Incentive systems also need to fit with the new structure. If a company wants to make
use of performance incentives, then the performance of customer to customer processes need to
be the baseline.
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Part 2 - Process Control
Process expert
Aside from the organizational structure a proper functioning of process ownership is dependent
on current knowledge and information about the layout and performance of the process. Often, a
process owner is unable, either for lack of time or knowledge, to keep a good view of the process. A
solution is to link a process owner to a process expert. This process expert is substantially trained
and keeps a constant watch on one or a few processes. The distance between process owners and
process experts is small, allowing the process owner to act immediately when necessary.
Is it important to create procedures for a frequently changing group of temporary workers in a call
center? That sounds like a good idea. With uniform procedures employees can be trained effecti-
vely and quickly.
Do we want to document the sales process of our sales employees in the form of working instructi-
ons? Perhaps this isn’t such a good idea. It is important that these employees can flexibly respond
to situations while still maintaining a level of detail. Also, there are no or little repeat actions. Esta-
blishing processes for this group will certainly meet strong resistance: “I determine how I reach my
targets…”
Each step in the decision tree is organized by asking a question about the processes. For every
process we use the tree and test the criteria. If a process matches a criteria, we want to control
this process. Processes that do not match any criteria apparently do not have a direct need to be
managed and controlled. Examples of processes with little need for control are the processes for
refilling the coffee machine or the copy machine.
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Part 2 - Process Control
The figure below gives an example of a decision tree for process control.
No specific requirements
for control
With the help of the box of marbles we can decide which processes we want to control and there-
fore document. The next question is, how detailed do we want our documentation to be? Any pro-
cess can be described in a few big steps or in a large sequence of small actions. The challenge is
to describe a process with enough detail, but not more than necessary.
Level of detail
A detailed way of documenting processes is by making procedures. Sometimes this is useful (see
the previously mentioned examples), but often the knowledge and skills are so engrained in the
minds and hands of the people that it is not necessary to record the process in such a level of detail.
It is also challenging and time consuming to make and maintain instructions for processes that often
change or need flexibility and/or creativity.
By the way, a procedure is not the same as a user manual for a system. It is almost always useful
to make instructions or user manuals for specific systems.
There is a large gap between describing nothing and making procedures. This gap is filled with
intermediates of process descriptions. Graphic process models make it possible to clearly and
visually document the process. See section 1.9 for more information about process models.
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Part 2 - Process Control
A second tool for taking appropriate control measures is the process pyramid. Various options for
describing processes are shown in the process pyramid (see figure below). The idea is to minimize
the amount of processes that have working instructions and to use all intermediate options instead.
With a process pyramid a decision about a fitting level of detail can be made.
Number of processes
Process identified
Output of the process
Interfaces with the customer
Interfaces with third parties
Mainsteps in the process
Interfaces between departments
Mandatory order of activities
Work instructions
Detail level
descriptions
Figure 2.3: Detail level of descriptions3
When documenting processes it is a misunderstanding that more detail is always better. A good
process document is ‘fit for purpose!’. It reflects the daily use and the objectives of the organization.
Step 4: Work!
Step 4 is the middle step on the road to process control. This step is actually a resting phase. The
results of the previous steps are secured here. This means that thinking in processes must sink
in and the principle of process ownership has to work. Responsibilities need to be accepted and
isssues in the process have to be acted upon. It is possible that not all process owners pick up this
role well. In this case organizations need to take action.
In the previous step various process models and descriptions were developed. For this fourth step
it is important that work is performed in compliance with these models. The controlled way of pro-
cess execution, such as documented, needs to be secured in the organization. If work performed
deviates from this, then the process is not controlled. The process models are nothing more than a
piece of paper on which a different actuality is described. In many organizations this is the case.
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Part 2 - Process Control
There are various causes that lead to process models that poorly reflect the actual work performed:
• The process descriptions are not well prepared.
Incorrect descriptions need to be modified so that they correspond to the (desired)
actuality.
• Employees are still too free in their process execution.
For a controlled execution, the process documentation should be followed closely. If
this does not regularly occur, there is bad securing of the process. This is a manage-
ment problem. Management must ensure that work is performed in accordance with the
process documentation.
• The work requires more flexibility than that given in the documentation.
As described earlier, not all processes should be documented in detailed descriptions.
Processes that change frequently or need room for flexibility and creativity are difficult
to properly describe. Curtailing the freedom of employees may also cause tension. The
best solution in this case is to make less detailed descriptions, to allow more room for
the necessary flexibility.
But what are the right areas? Often organizations measure simply to measure. This is of course
not desirable. We need a manageable set of Performance Indicators (PI’s) that provides us with
information on the performance of the process.
A proven way to develop good PI’s does not start with the process itself, but with the stakeholders
(interested parties) of the process. Key stakeholders are the customers of the process, staff and
management (all with different interests).
Exampled of different interests:
• Fast turnaround time (customer, management)
• Low costs (management)
• Few errors (customer, management, staff)
• Few complaints (customer, management, staff)
• Low stress (employees)
• Controlled risk (management)
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Part 2 - Process Control
We call these interests external quality factors (‘External Critical to Quality’; E-CTQ’s). In order to
create PI’s, these factors need to be translated into ‘internal quality factors’ (I-CTQ’s). These are
things that can be measured in the process.
Example of I-CTQ’s:
• Turnaround time: time between trigger and result in the process
• Complaints: number of complaints per week / month / year
• Errors: number of errors that need to be corrected per week / month / year
• Risks: periodic monitoring of risk control measures
• …
The figure below is a graphic depiction of the interrelation between the stakeholders the PI’s.
Work
External
Quality Speed Costs
pressure CTQ’s
The measured results of the PI’s are depicted graphically. A much used graphical technique is the
control chart. In a control chart the time is presented on the horizontal axis and the measured result
of a specific PI on the vertical axis. In this way, it is possible to gain insight in the variation of a parti-
cular PI. In a control chart we can use upper and lower limits. These limits indicate in which area the
outcome of a PI is acceptable. Setting control limits is also determined by the stakeholders – they
determine where the boundaries for the process performance are.
In the case that the measured results are negative for a PI the process can be adjusted (see step
6 in process control). If a process consistently produces inadequate results, then this may be an
indication to initiate a process improvement project (see Section 3)..
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Part 2 - Process Control
Figure 2.5: Control chart with peaks outside the control limits
There are two ways to control or guide: directly within the process or with the interference of ma-
nagement. Compare this with operating an airplane. When this airplane is flying on automatic pilot
and the course is altered due to a wind gust, it will automatically be fixed. Eventually the pilot will
be informed by the automatic pilot that this adjustment took place. In the case that a pilot is flying
the plane, then the instruments will indicate a change in the flight path. The pilot will then determine
which action to take.
In the (production)industry we see that many processes are operated automatically. There is con-
tinuous measurement of the performance of machines and human actions. For different scenarios
specific control measures are programmed. Operators are given information about the performance
and internal control actions in the process. Human action is only necessary when the measured
results do not fit in a predicted scenario.
Alternatively we can control processes with standard human intervention. Employees on the work
floor are responsible for specific PI’s and control the process manually in the case that scores fall or
threaten to fall outside of the control limits. In this case it is also recommended to work with prede-
fined scenarios. Good process control demands as much as possible to be standardized.
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Part 2 - Process Control
The responsibility for PI’s is essential when working with PI’s. If a PI scores outside a control limit,
then someone needs to feel responsible to do something about this. This is called a PI owner. There
can be PI owners at various levels. For example a process owner is responsible for the end-to-end
process. His or her PI’s will also lie at this level. An employee can also be owner of a PI within a
process step. PI owners usually get performance rewards based on the performance of his or her
assigned PI’s.
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Part 2 - Process Control
Having a grip on the processes creates a lot of trust. The results of the processes are more predic-
table causing an increase in quality. No more fires need to be put out. This is an ideal moment to
further improve the process. Structural issues can specifically be targeted and solved. Therefore:
In step 7 conditions are created that ensure a controlled optimization. There are employees that
want, can and may spend time doing this. It is also ensured that a culture is created in which eve-
ryone, from top to bottom, is motivated to continually work together on process optimization. The
next part of this book goes into more detail about an approach for process improvement.
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Part 2 - Process Control
MUST
Step 1 to 3 cost most of the energy. Not all employees think in processes yet (insight). Energy is
put into creating the process view and identification of processes (step 1). Process ownership (step
2) can lead to political discussions because we change the organizational structure. Documenting
processes (step 3) is a large investment that does not directly deliver results and sometimes is
viewed as a threat.
In order to implement these first steps management needs to be persistent.
REST
Step 4 is a resting phase. This step is primarily about securing the previous steps. With the products
of the previous steps the BPM ideas are brought on by the employees involved. From realization
(“my organization has end-to-end processes”) comes understanding (“processes are a useful step-
ping stone for many things…”).
TRUST
The final steps to process control are all about the performance of the processes. In the previous
steps the responsibility of the end-to-end process is assigned (process ownership). In the next
steps the responsibility is expanded to performance responsibility (PI owners). This movement
often feels like a logical step. The last steps lead to GRIP on processes. Because the performance
responsibilities lie in the process, line management can take more distance. The responsibility
shifts to the line: Trust!
The ultimate form of grip is that you can let go with confidence!
Jeroen de Groot
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Part 2 - Process Control
56
Part 3 - Process Improvement
57
Part 3 - Process Improvement
58
Part 3 - Process Improvement
3.1 Introduction
The previous chapter discussed the importance of good process control. The next level of BPM fo-
cuses on process improvement, where selected processes are improved. This word emanates ac-
tion. Something is going to change! This change should be a successful move in the right direction.
There are too many cases of (improvement)projects that, despite all good intentions, cannot live up
to their expectations. Of course this should be prevented. We must also realize that improvement /
change also may cause uncertainty amongst the staff.
When improving processes, focusing on the issues is important. Employees that focus on the daily
execution of activities in a process can very well miss opportunities for improvements in this pro-
cess. They are focused on performing the job; not finding solutions to problems. However, if we are
improving processes, we do want to use the experience from the employees.
Improving processes works best in a project environment, separated from the daily work.This way
the attention can be focused to the bottlenecks and possible improvements, using all knowledge
and experience present. A project also assures that the boundaries can be set. Where do we take
immediate action? What investment is necessary (Business Case)? What do we leave for later?
There are various methods for process improvement and quality improvement. Notable examples
include Lean Management and Six Sigma. This part gives a short description of these methods,
followed by a best practice approach to process improvement. This approach is inspired by the
previously mentioned methods and has been proven with BiZZdesign’s advisory work.
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Part 3 - Process Improvement
A certain level of process control is therefore important for successful improvement projects. In
practice, we see that the attention paid to processes during process control activities already lead
to a form of improvement. Many issues are control issues. Processes that are ‘controlled’, but still
do not perform optimally, are eligible for project based process improvement.
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Part 3 - Process Improvement
Lean Management
Lean Management was developed by Toyota in Japan. It originated in the period after World War II
in a time when there was little money in Japan. However, Toyota still wanted to compete with U.S.
and European manufacturers. With a collection of clever techniques, they managed to focus on
activities that add value to the customer. Wherever costs incurred but no value was added there
was waste and therefore room for improvement.
The objective of Lean Management is to: “... provide perfect value to the customer through a perfect
value creation process that has zero waste”. Lean Management is not so much a method, but a way
of thinking (Lean Thinking). Many best practices merged into one method: Lean Management. Lean
Management offers standard solutions for standard problems.
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Part 3 - Process Improvement
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Part 3 - Process Improvement
Six Sigma
Six Sigma was developed in the mid eighties by Motorola and General Electric. The methodology
focuses on variations in the process. Variations determine the perception of quality of the customer.
Organizations that have a good grip on the variation of their process output can deliver high quality.
Moreover, it appears that poor quality creates high costs. In this context we speak of “the hidden
factory.” This hidden factory is further descriped in section 1.12 of this book (The business case for
BPM). Six Sigma helps organizations to keep the variations in processes under control and thus
also minimize the ‘hidden factory’. The sigma (σ) is a mathematics symbol for the degree of varia-
tion. A level of 6σ represents extremely little variation. For many organizations a level of 6σ is not
feasible or desirable; 6σ is mainly the name of the method.
The processes form the basis of Six Sigma. To understand the performance and variation in pro-
cesses, measurements are made: measuring is knowing. Within Six Sigma much attention is paid
to statistics. It is precisely this that makes this method powerful. Also, with the use of available
software tools, statistics is no longer something that should scare someone off.
Six Sigma also concentrates on project design and organization. There are predefined roles, in-
spired by eastern fighting sports, such as Black Belts, Green Belts and Yellow Belts. Also a “cham-
pion” role is assigned: the management sponsor of the project. Based on the different roles the
persons involved are given training on the Six Sigma approach.
1. Define
In the define stage, the project is started. The problem is named, the project team is compiled
and the project is defined. Important in this step is that a valid Business Case is created. The
expected benefits should be greater than the costs.
2. Measure
With the use of various techniques, we gain insight into the current performance of the pro-
cess. For this, the quality of the process is made ‘measureable’. Process models help project
members to understand the process and issues.
3. Analyze
In the analysis step, we search for the variables in the process that (strongly) influence the
quality. The Six Sigma methodology provides many graphical and statistical techniques for
analysis.
4. Improve
Based on the analysis step, understanding is gained about the influence factors that cause
problems in the process. These influence variables are also the key to process improvement.
In the improvement step, we use statistical techniques to achieve optimal process design. We
also use creative techniques like brainstorming, to achieve improvements.
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Part 3 - Process Improvement
5. Control
A controlled process is the basis for an improvement project. After completing an improvement
project, we must return to a controlled situation. The control step ensures that the process
(performance) does not fall back to the old level. We use monitoring and control instruments
(process control) for this.
Define
trol
Measu
Con
re
Im
pr
ov ze
e aly
An
Choosing a method
How should one make the right choice between Lean Management, Six Sigma or something else?
If we take a look at Lean Management and Six Sigma, then we see that the methodologies describe
different approaches, however, similar results are achieved:
• Less mistakes in the process
• Focus on the customer – improving quality
• Saving on costs in the process
Of course there are differences. Six Sigma mainly focuses on specific issues and is very thorough.
This is very powerful for solving problems. Through the advanced analyses the root causes are
identified, which can then be addressed. However, this requires a lot of work! A fulltime improve-
ment project typically lasts three months, focussing on one issue. This requires a lot of investment
in time and money.
Lean Management starts off faster. Analyses can quickly be made on the added value of activi-
ties and on waste. Based on the results Lean has standard solutions that can be implemented.
Therefore, Lean offers fast results by connecting standard solution so standard issues. Howevere,
if an issue is very complex then there is the chance that Lean Management can’t provide optimal
solutions. Also, within Lean Management there is less thought about the design of the improvement
project (such as project roles and management support).
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Part 3 - Process Improvement
The choice between Lean Management and Six Sigma depends on:
• What’s right for the organization (culture, desired speed, budget)
• What’s right for the (complexity of) problems in the organization
The figure below is a strengths diagram where a comparison is made between Lean Management
and Six Sigma. The words Complexity Problem are written in bold. This criteria is leading to a cer-
tain degree. When problems are so complex that Lean Management cannot solve them, then the
methodology is not suitable.
Complexity
problem + Six Sigma Involvement of
+ employees
Lean
Management
+
Speed
-/- Costs
Many organizations choose to combine Lean and Six Sigma: Lean Six Sigma (LSS). Is this ‘the
best of both worlds’? For organizations that are relatively new to process improvement, this usually
means that they initially start with Lean Management techniques. This offers quick results. Secon-
dly they implement Six Sigma techniques to solve complex issues where Lean is insufficient.
The next section introduces a best practice approach for process improvement. This approach is
an example of the abovementioned combination of Lean Management and Six Sigma, developed
by BiZZdesign.
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Part 3 - Process Improvement
The best practice approach for process improvement consists of six steps:
Step 1: Define
Step 2: Identify the problem
Step 3: Determine quick wins and waste
Step 4: Analyze causes
Step 5: Generate and implement a solution
Step 6: Assure a solution – process controll
Step 1: Define
Defining is an important step; it is here where the improvement project takes shape. In an initial
situation various problems (symptoms) are known within the organization. However, to determine
whether we should start an improvement project, we need a business case. Only with a valid busi-
ness case the project can start. This business case should continuously be evaluated in the next
steps of the improvement project: is the business case still valid?
A business case allows for the creation of an action plan. This plan generally consists of the fol-
lowing subjects:
• Objectives
• Approach
• Planning
• Conditions
• Reporting
One of the key success factors for improvement projects is to involve the right people. This ac-
tually applies to projects in general. In a successful improvement project there is always a good
knowledge and experience mix between project management, process improvement techniques,
process knowledge and of course experience in the workplace.
An important role in improvement projects is a sponsor in management. All too often, projects are
successful, but ultimately a lack of sponsorship in management causes the changes not to take
place. This is a pity and a waste of the investments in the project. Ensure that a sponsor is and
remains committed to the project.
Depending on the business case, a decision is made which processes and subprocesses the pro-
ject will concentrate on. Again, this demarcation is very important. If too much is selected the project
can become too large and therefore won’t deliver the desired results.
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Part 3 - Process Improvement
In projects we can differentiate various stakeholders. These are persons with a particular interest
in the project. A stakeholder analysis gives us insight in these stakeholders and their interests
(stakes). A good stakeholder analysis also provides a good prediction of how much resistance the
project will face. The analysis helps to pay specific attention to certain persons or groups, so that
we can reach our goals. For example, project reports will be formed partially based on the needs
of the stakeholders.
During this problem identification step a problem area and the reason why it needs to be worked on
are named. Questions to be answered are:
• What is the problem?
• For whom is it a problem?
• How often does the problem occur?
• When does the problem occur?
For good insight into the actual extent of the problem and its causes, it’s important to take mea-
surements to gather facts. Indeed: “Measuring = Knowing!” The challenge here is to translate the
identified problems into executable measurements. If, for example, the turnaround is too long, it
makes sense to measure processing times and delays in the process. If error rate is a problem,
then we can concentrate our measurements on the number of failures or amount of repair work.
Also measures that track customer complaints and inquiries provide insight into quality issues.
For gathering data, we can sometimes rely on data in information systems. In other cases we must
make new measurements: we sample, time or collect data. A graphic depiction brings measure-
ments to life. After all, a graph says more than words. Many analysis techniques therefore use
graphic figures.
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Part 3 - Process Improvement
Histogram of age
Normal
12
10
8
Frequency
0
12 14 16 18 20
Age
A powerful way to detect types of standard problems that can easily be resolved is the ‘waste scan’.
In all organizations energy is spent on waste. Lean Management talks about ‘deadly wastes’.
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Part 3 - Process Improvement
Transportation
Motion
Over-
Registration processing
12
9 3 Waiting
reject 6
claim
Iteration
12 create
9 3 unknown claim file
customer
6
complete
receive retrieve customer 12 check
claim information existing 9 3 completeness
customer
6
register
claim data incomplete
modify claim
data
If waste is detected, then finding a solution to stop it is often simple. Lean provides many standard
solutions to standard issues (Best Practices), which can lead to quick results. The Lean techniques
offer a comprehensive package for quick wins.
To find the most important influence factors we will need to search as detectives within the process
and the acquired data. There are various ways to do this:
1. Further analysis of the collected data from the measurements
2. Utilizing process knowledge among employees
3. Obtain input and best practices from available (technical) knowledge and literature
4. Performing various experiments
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With the abovementioned techniques, an inventory of potential influence factors is made. Ultima-
tely, the challenge is to identify the largest influence variables from this set. By addressing these
variables, the most results are potentially achieved. We should focus on the big fish in the sea!
Finding solutions is a creative process. The goal is not to look for a solution in one direction, but
instead to explore different solution areas. Sometimes new, refreshing and even unrealistic ideas
can contain elements of value. Don’t immediately condemn wild ideas as being too expensive or
cumbersome. There are many creative techniques that can assist in identifying solutions and so-
lution pathways.
The result of this creative process is an abundance of ideas. The best ideas will be selected for
implementation and documented in the implementation plan. Within this plan an estimate is made
for costs and expected returns. Each improvement needs a valid business case.
By implementing the valuable improvements this step is completed. Good communication and pro-
ject management are important elements of a successful implementation.
Innovate
Improve
P
Control R
O
J
E
Isight C
T
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In part 2 of this book the topic of process control was elaborated upon. Seven steps were defined
for process control:
Step 1: Process identification
Step 2: Investing in Process Ownership
Step 3: Capturing Processes
Step 4: Work!
Step 5: Measuring process performance
Step 6: Controlling the process
Step 7: Continuous improvement of the process
As mentioned before, the first of these steps should be filled in before starting the improvement
project. Yet it is possible that improvement proposals also affect these parts. For example, maybe
ownership is illogical. The remaining steps from the improvement project should be updated:
Step 3: Establishing processes: The new way of working is established
Step 4: The improved way of working is secured. People take responsibility for this.
Step 5 & 6: Name the PI’s; guide and monitor based on this
The last step of process control focuses on continuous improvement. An improvement project usu-
ally pumps a lot of energy into the organization. By involving people from the work floor in the
project, we see that a lot of enthusiasm is created. Experience shows that after completion of these
projects, people continue to apply their gained knowledge in their work. It is important to give room
for this to occur. This is possible by, for example, organizing sessions at the work floor. In these
sessions employees can share issues, solutions and ideas. This puts a movement of continuous
improvement in motion. Within Lean Management this form of improvement is known as ‘Kaizen’.
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Part 4 - Process Design
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Part 4 - Process Design
4.1 Introduction
In the previous sections we elaborated on process control and process improvement. However,
the ultimate form of BPM is formed by process design. Ultimate, because when designing a new
process there are no restrictions caused by a previously existing process. The designer has consi-
derable freedom to arrange the process.
In recent history, many organizations have undergone large scale redesign programs for their pro-
cesses. Many people likely remember the Business Process Engineering (BPE) and Business Pro-
cess Re-engineering (BPR) programs. There’s a big chance that these are not all nice memories. In
the 90s many large reorganizatios were executed in the form of BPR. When directors initially spoke
of processes, it eventually turned out that people were laid off or were replaced with ICT.
The reputation of BPR and BPE is bruised. Therefore it is recommended that these terms are used
with care. However, this doesn’t mean that process design no longer exists or is not useful. Where
processes exist, processes need to be designed - preferably with knowledge hereof and with the
use of good methods.
In this part we are going to discus this question first: when should we design or redesign proces-
ses? Then we will describe a method for process design.
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Part 4 - Process Design
A process redesign is a bit more complicated. In the case of a redesign there is an existing process
that we want to replace with a new process. There are various reasons to decide on a redesign,
for example:
• The process does not function according to the needs of the organization or their
customers
• New regulations require a different process
• New policies in the organization requires a different process
• New technologies or channels make it possible to design a better process
It sounds really nice – redesigning a process. There are no barriers of the existing process; a new
process can be shaped from a clean slate. There are however many redesign projects that do not
deliver the desired results. Often the reason for this is that the knowledge and experience from the
existing process is not utilized well during the redesign. As designers we don’t want to be held back
by the old process, but on the other hand we are missing out if we don’t take along the lessons
learned. It is good to be aware of this.
In the case that there are performance problems in a process, it is worth it to first take a look at the
possibilities that process control and process improvement offer. For this we first perform a short
analysis of the existing process. The first four steps from the improvement approach (part 3) can
be used for this. Based on this analysis we can determine the BPM level we are going to operate.
If it appears that a full redesign is needed, then we can directly address the issues that were re-
vealed by the completed analysis. Also, with changes in the environment, such as laws, policies
and technology it is a good idea to first take a look at whether the current process can be used as
a starting point.
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In the late 90s a partnership was formed between research institutes and several business orga-
nizations where research was conducted on process design. Powerful within this ‘Testbed’ project
was that the products were directly validated in practice at the participating organizations. The
Testbed project resulted in an extensive BPE method including practical approaches, various tech-
niques, best practices and (tool)support.
The core of this BPE method focuses on ‘understanding complexity and the coherence of business
processes’. This makes use of model based change. In the figure below the principle of model
based change is illustrated. From a running business process (bottom left) a model is made (above
left), taking a step from actuality to a model world. This is followed by making one or more alterna-
tives in the modeled world in order to design a new process (above right). This approach makes
it possible to put several designs side by side and compare them in the modeled world without
disturbing the business activities.
The best alternative is chosen and then implemented back to actuality (bottom right). Model based
change helps us to make the complex actuality manageable. It also allows us to take all aspects
into account that are important for the design of processes.
We design according to COPAFIJTH. In section 4.5 the COPAFIJTH aspects are explained in detail.
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Part 4 - Process Design
model world
Reality
Project Management
Implementation
Planning migrate
Project Communication
target setting,
realisation
Project Scope
(interviews, workshops)
interviews,
workshops
Modelling
Bellow is a short overview of the four approaches in the BPE method. These approaches are useful
for designing and redesigning processes. In the case of a redesign, knowledge of the current pro-
cess is very important.
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Based on these steps a redesign approach seams relatively sterile. You follow the steps resulting
in a redesign. In practice however, it is not that simple. A successful change within an organization
starts at step 1. By allowing employees to take part in all steps, a good foundation is set for a suc-
cessful redesign.
Choices need to be made at various levels in regards to delineation. The IGOE layout discussed in
section 1.6 is useful for this.
Process
Which parts of the process are eligible for redesign?
What problems exist in the current process?
Is it a customer-to-customer (chain) process or a subprocess that needs redesigning?
In the case of a subprocess: Where are the ‘nicks’?
Guides
The guides are the guidelines for the process, the rules for the designer. Guides can come from
management or legislation. Also other stakeholders (the demanding customer!) can deliver guides
for the process. It is useful to get a good overview of the guides for the process at the very begin-
ning of the design project. The guides determine the ‘playing field’ of the (re)design. It’s possible
that in this step guides already contradict each other. For example, management wants something
that is legally not allowed. It is therefore convenient to discuss these contradictions in this first step.
Obviously conflicting guides cannot simultaneously be incorporated into a process design.
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Enablers
A process needs enablers to be performed. Examples of enablers are IT systems, staff, equipment
and infrastructure. Regarding the enablers, restriction are almost always made for the process
designer. Some examples:
• “Current IT systems are being held on to”
• “Current employees must be able to continue to do the work”
• “The new process should eventually be done by 20% fewer people”
• “We will not move to another location”
For all IGOE aspects, it is important to know the scope before a redesign process is started. All
constraints should be unambiguous to the various stakeholders.
Constraints help the process designer to design in a way fit for the organization. However, the
constraints also limit the modeling freedom. The more constraints ther are, the less room there is
to implement new ideas. Good discussion about constraints with stakeholders helps the process
designer to determine a proper scope for the redesign.
The process essentials are the building blocks that will be present in every redesign.
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Part 4 - Process Design
There are various creative techniques available to offer the process designer support in using the
design space. To give good form to redesigns we use process models for visualizing, simulating and
comparing design alternatives. Additionaly, process models help to communicate to stakeholders.
Section1.9 discussed in more detail the role of process models within BPM.
During a redesign project it’s good to develop several alternatives (two or more). Different alterna-
tives can be compared and simulated, before a choice is made by the stakeholders. In the figure
below an example is given from a process simulation.
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Part 4 - Process Design
But which alternative is the best? The redesigns can be compared on several fronts, like costs,
savings, speed and quality. For a good selection we first generate a sound set of selection criteria,
together with our stakeholders. These criteria can also include a weighting factor. This makes it pos-
sible to objectively weigh the various redesign alternatives and choose the best alternative.
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Part 4 - Process Design
The letters of COPAFIJTH stand for aspects that can be affected or that need to be taken into ac-
count in an (re)design project.
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About the author
Besides his work as a consultant, Peter provides several courses and trainings. He teaches at
the University of Twente, TSM business school and Pro Education. Also he provides lectures at
international conferences. Peter is author of several articles and the earlier published book ‘Quality
improvement of processes’ [2006, Dutch].
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References
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If you are new to process work this book is certain to give you a
foundation for understanding what the buzz has been and still
is about. If you are a process improvement practitioner there
are sets of simple steps to guide you. If you are a manager
you will discover what is needed for your processes to become
better, faster and cheaper using a straightforward approach
that works. Roger T. Burlton, P. Eng, CMC - Chief Consultant
BPTrends.com
BiZZdesign Academy
E-mail info@bizzdesign.com
Internet www.bizzdesign.com
BiZZdesign www.bizzdesign.com