Using Process Frameworks to Get Real Work Done. Findings Review
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1 Using Process Frameworks to Get Real Work Done Findings Review
2 Introductions Jeff Varney, Sr. Advisor John Tesmer, Sr. Project Manager As the process management and process improvement practice lead within APQC, Jeff coordinates research and custom projects for Business Process Management and process improvement (e.g., Lean, Six Sigma, etc.) spanning all industries and disciplines. Jeff s role also includes developing and implementing solutions that combine KM approaches, measurement, and benchmarking with process improvement efforts. John Tesmer is a Sr. Project Manager within APQC s Advisory Services group. In this role he is responsible for the day-to-day operations of APQC s Open Standards Benchmarking business. John is also responsible for the overall management of the Process Classification Framework, APQC s taxonomy of business processes used by businesses around the world for benchmarking, content management, and process definition. 2
3 3
4 Why did we charter the Frameworks project? 4
5 What is a Process Framework? A list of mutually exclusive, collectively exhaustive, hierarchically decomposed business processes Begins with categories at its highest level Decompose those hierarchies into process groups, processes, activities, and in some cases tasks Decomposition provides contextual relevance to its users Contextual relevance important when working across teams, or even organizations 5
6 Three Main Uses Benchmarking Process definition Content management 6
7 Benchmarking Framework organizes KPIs and best practices Simplifies benchmarking Enables cross-industry transfer of knowledge Makes benchmarking economical Protects process assets from scrutiny from external organizations Show the two images: 5 participants connected to each other, 5 participants connected thru a framework. 7
8 Process Definition Define commonly used sub-processes or activities Refer to consistently defined and commonly used building blocks Process defined based upon specific elements of process framework Contextual reference valuable for identifying gaps and overlaps in processes Use framework to identify each sub-process Consistent documentation Accurate definition Show an order-to-cash process flow at level 1. 8
9 Content Management Mutually exclusive, collectively exhaustive listing removes hard work for library scientists and master data maintainers Focus on defining other more important metadata and appropriately categorizing content Consistent, easily understood structure Allows individuals to quickly find pertinent content Reduces time and effort spent developing multiple frameworks Eliminates futilely searching non-standard taxonomies Example: Lexmark Used PCF to reduce number of Lotus Notes databases used for project collaboration To a reasonable amount from just under 2 databases per employee! Show the Lexmark example. 9
10 Types of Process Frameworks Functional focus on one or more aspects of a business Enterprise document all processes within an organization Industry tailored to industry specific products, services and functions Cross-industry broad enough to fit easily with most industries with little customization Framework Types Functional Enterprise Industry COBIT PCF etom Cross-Industry SCOR PCF VRM 10
11 An example Coors - US Business Enterprise Manage Beer Business Establish Business Direction Manage Public Policy Environment Sustain Corporate Entity Provide Enterprise Excellence Manage Corporate Assets Create Consumer Demand Understand Consumers Develop Brand Plans Execute Brand Plans Manage Product/Package Lifecycle Generate Revenue Manage Key Accounts Manage Wholesalers Perform Order Management Provide Customer Support Manage Sales Performance Execute Supply Chain Plan Supply Chain Source Materials & Services Manufacture Product Deliver Product Return Goods Support Beer Business Leverage Human Capital Manage Safety, Health & Environment Ensure IT Excellence Ensure Legal Adherence Ensure Financial Excellence Manage Support Services 11
12 APQC s PCF 12
13 Study Best Practices A L C A T 13
14 Accelerate Three main use cases: Benchmarking Content Management Process Definition 14
15 Locate 15
16 Centralize 16
17 Adopt before Adapt 17
18 Technology 18
19 Current and Upcoming Research 19
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