Business Process Analysis

GROUP 6
Gubal, Angelica Nicole D.
Lim, Mary Ann P.
Magpantay, Janella S.
Business Process Analysis (BPA)
— is a systematic approach to examining
and evaluating an organization's
business processes.

— It involves identifying, documenting,

and analyzing the current processes to
identify bottlenecks, inefficiencies, and
areas for improvement.
Business Process Improvement
(BPI)
— It is your discovery guide, showing you
the in’s and out’s of your business
processes.

— It is a practice in which enterprise leaders

analyze their business processes to
identify areas where they can improve
accuracy, effectiveness and efficiency and
then make changes within the processes
to realize these improvements.
5 steps of Business Process Analysis
1. Review how your processes fit into work flows
- Your processes should all lead back to larger
initiatives and business goals. Processes are the “how” of
your business—this is how we achieve our goals. But
they should connect to your “why.”

2. Collect information on what’s happening now

- This is the data gathering stage. Interview
key stakeholders, create surveys, and review
associated KPIs and metrics.

3. Analyze and map your data

- Process mapping helps you create a flowchart or
other visual map of the current sequences and steps so
you can better visualize processes. In this layout, it’s
easier to identify patterns and gaps in your process flow.
5 steps of Business Process Analysis

4. Identify opportunities for improvement

- During the analysis step, you’ll identify redundancies
and gaps. These are prime areas for improvement.

5. Make changes
- Business process improvement (BPI) is where you
take action on everything you’ve learned. After your
BPA, you’ll use BPIs to adapt and make changes to
your processes with a focus on increasing profitability.
Business Process Analysis Methods
— Root cause analysis: Use this analysis to identify
the foundation of your processes and ensure it
connects back to your company’s larger goals.

— SWOT analysis: SWOT is an acronym that

stands for strengths, weaknesses, opportunities,
and threats. This can be a helpful analysis
because it gives you insight into how your
processes are succeeding and where they can
improve.

— Gap analysis: Gap analyses show you what’s

missing in your processes when compared to your
Process Mapping and Optimization
— A planning and management tool that visually
describes the flow of work.

— It is also called a flowchart, process flowchart,

process chart, functional process chart,
functional flowchart, process model,
workflow diagram, business flow diagram or
process flow diagram. It shows who and what
is involved in a process and can be used in
any business or organization and can reveal
areas where a process should be improved.
 Types of Process Mapping
— Detailed Process Map: provides a much
more detailed look at each step in the
process
— Value-Added Chain Diagram: unconnected
boxes that represent a very simplified version
of a process for quick understanding
— Rendered Process Map: represents current
state and/or future state processes to show
areas for process improvement
PROCESS MAPPING EXAMPLE
Performance Metrics
— Performance metrics are used to measure
the behavior, activities, and performance
of a business. This should be in the form
of data that measures required data
within a range, allowing a basis to be
formed supporting the achievement of
overall business goals.
Types of Performance Metrics to track
1. Business performance metrics track and assess
specific processes within a business, such as
sales, marketing and profitability. This allows for
comparing data against established objectives or
goals. The resulting data from tracking
performance metrics helps businesses determine
where to make adjustments to reach set goals.
2. Sales metrics measure an individual’s or a team’s
performance in sales of a business’s products or
services. Common sales performance metrics can
include sales action, lead generation and retention
and key performance indicators like total revenue
and customer reach. Companies track sales
metrics by comparing these actions to sales goals
the team or company sets. Monitoring each area
will provide valuable insight into how a business’s
sales methods are working.
Types of Performance Metrics to track
3. Project management performance metrics are
used to measure the effectiveness and profitability
of a project. From the first assignment brief to its
completion, the processes within each stage of a
project are measured and compared to goals and
objectives. This data can offer insight into how the
project should be completed
4. Employee performance metrics assess
employees’ productivity and efficiency in reaching
established benchmarks that contribute to the
overall growth of a business. Tracking employee
performance metrics helps managers can
influence adjustments or make necessary
improvements to help employees reach their work
What Are Key Performance Indicators (KPIs)?

— Key performance indicators (KPIs) are

quantifiable measurements used to gauge
a company’s overall long-term
performance. KPIs specifically help
determine a company’s strategic,
financial, and operational achievements,
especially compared to those of other
businesses within the same sector.
Categories of Key Performance Indicators (KPIs)
— Strategic KPIs are usually the most high-level.
These types of KPIs may indicate how a
company is doing, although it doesn’t provide
much information beyond a very high-level
snapshot.
— Operational KPIs are focused on a much tighter
time frame. These KPIs measure how a
company is doing month over month (or even
day over day) by analyzing different processes,
segments, or geographical locations.
— Functional KPIs hone in on specific
departments or functions within a company.
— Leading/lagging KPIs describe the nature of the
data being analyzed and whether it is signaling
something to come or something that has
already occurred.
Business Process Reengineering (BPR)
— It is a management practice in which the related
tasks required to obtain a specific business
outcome are radically redesigned to improve
efficiency, effectiveness and performance.

— By critically examining and redesigning business

processes, BPR can also improve other business
aspects, such as cost, output, service, speed and
quality. BPR helps organizations to fundamentally
rethink how they do their work.

— BPR can be effectively implemented in

organizations of all sizes and across various
industries.
How does business process
reengineering work?
The principles of business process reengineering
were laid out by Hammer and organizational
theorist James Champy in "Reengineering the
Corporation: A Manifesto for Business
Revolution," which became a national bestseller.
To achieve significant improvement in quality, time
management, speed and profitability, the authors
urged businesses to follow these seven principles:
— Organize around outcomes, not tasks.
— Identify all the processes in an organization
and prioritize them in order of redesign
urgency.
How does business process
reengineering work?
— Integrate information processing work
into the real work that produces the
information.
— Treat geographically dispersed
resources as though they were
centralized.
— Link parallel activities in the workflow
instead of just integrating their results.
— Put the decision point where the work
is performed and build control into the
process.
END OF PRESENTATION

THANK YOU!
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