Extended Process Modeling: LEADing Practice Modeling with igrafx Ed Maddock VP of Development and Process Management Solutions
Copyright note on Intellectual Capital: ALL RIGHTS RESERVED LEADing Practice ApS respects the intellectual property of others, and we ask others to do the same. All information and materials contained in the LEAD frameworks, methods and approaches with associated tools and templates, such as maps, matrices and models is Intellectual Capital (IC) and Intellectual Property (IP) of LEADing Practice ApS and limitations apply to the reuse of this IC/IP. The intellectual Property Rights (IPR) consists of information, knowledge, objects, artifacts, experience, insight and/or ideas, that are structured to enable reuse to deliver value creation and realization. The LEADing Practice ApS intellectual capital is protected by law, including, but not limited to, internationally recognized United States and European Union IPR copyright law. Except as specifically indicated otherwise in writing, LEADing Practice ApS is the owner of the copyright in the entire LEAD Frameworks content (including images, text and look and feel attributes) and LEADing Practice ApS reserves all rights in that regard. Use or misuse of the IPR, the trademarks, service mark or logos is expressly prohibited and may violate country, federal and state law. LEADing Practice ApS is an open architecture and open standard community and therefore provides open access to all deliverables for certified LEAD practitioners, thereby ensuring that modelling principles are applied correctly. A open architecture and open standard community has been set in place to encourage sharing, learning and reuse of information and thereby increase knowledge among LEAD community practitioners, and with this ultimately improvement of one s project, engagement and the LEAD development. Use of the LEAD frameworks, methods and approaches is restricted to certified LEAD community members, in good practitioner standing, who are able to use these items solely for their non-commercial internal use. Legal access to the detail of LEAD will be provided to you with your membership. Members are prohibited from sharing the LEAD material in its entirety with other parties who are not members of LEAD community since the concepts and models are protected by intellectual property rights. Guidelines for LEAD community members using the IPR material As a LEAD member comes greater personal responsibility and the following intellectual property conditions apply: Can be used free of charge for LEAD certified practitioners. Cannot be share, copied or made available for non-community member, which are not LEAD certified practitioners. When using any materials, it must include a source notice either in an adjacent area or as a footnote to indicate the source. The source should be specified the following way : Source: A part of the LEAD Frameworks and possibly indicate the LEAD work product family, such as Part of LEAD Process Framework. Cannot be systematically given away do not download all our content and simply hand it over to other colleagues or clients that are not trained and certified. To ensure correct usage, any company usage of the LEAD material e.g. templates and tools has to be tailored and agreed upon by LEADing Practice ApS. LEADing Practice ApS may, in appropriate circumstances and at its discretion, terminate the access/accounts of users who infringe the intellectual property rights and pursue legal action. Guidelines for non-lead community members using the IPR material The following conditions apply to use of the LEAD Intellectual Property for non-community members: Can be used free of charge for lecturing and research at any University and Business School Material available at www.leadingpractice.com can be used in a non-commercial way for knowledge sharing. When using any materials, it must include a source should be specified the following way : Source: A part of the LEAD Frameworks and possibly indicate the LEAD work product family, such as Part of LEAD Process Framework. General guidelines that apply for all LEAD IPR material Any use of original texts, graphics, images, screen shots, and other materials from LEAD sources must be approved by LEADing Practice ApS. Any material cannot be generally distributed to colleagues, clients and or an undefined audience without written permission from LEADing Practice ApS. Cannot be altered or changed (the using company) in any way without explicit written permission from LEADing Practice ApS. In most cases, the LEADing Practice ApS acts as a distribution channel for the Publisher(s) and Authors) of the material provided. LEADing Practice ApS may, in appropriate circumstances of infringement of the intellectual property rights pursue legal action. For questions, please get in touch with us at info@leadingpractice.com.
Extended Process Modeling Agenda Enabling Business Innovation & Transformation 1. History of Process Modeling & Results 2. The Focal Point of Business Innovation & Transformation? 3. Process Modeling Best Practices BPMN 2.0 4. The Under-Served Practitioners 5. Enhancing the BPMN 2.0 Standard Extended Process Modeling 6. Applying Extended Process Modeling within the LEADing Practice Methodology 3
Enabling Business Innovation & Transformation Has Process Modeling been the focal point of Business Innovation & Transformation? Historic Success Factors using Process Modeling Easiest point of entry for Process Improvement Multitude of accessible Process Modeling tools Proven BPI methodologies (Six Sigma, Lean, etc.) Notation standards (e.g., BPMN, VSM, etc.) Low hanging fruit show initial ROI 4
Pain Points Drive Evolution Historic Pain Points of Process Modeling Activity often not aligned with Strategies, Goals, Objectives Methodologies consume resources Minimal reuse of Model components Many duplicate Services are developed in support of activity Localized improvements, but rarely Business Transformation 5
Pain Points Drive Evolution Process Modeling Solutions Have Evolved Due to Pain Points Adopted BPMN 2.0 as a standard Process Modeling Notation methodology (some exclusively) Added Repository solutions Content management, collaboration, etc. Support for some common shared Enterprise objects Alignment with Enterprise Architecture methodologies Greater number of successful projects Still limited Business Transformation 6
Pain Points Drive Evolution Many Process Modeling solutions still cannot do the job Limited traceability to Strategy/Goals/Objectives Limited Analysis & Monitoring Missing key Enterprise Objects & Relationships Missing concepts in Standard Notation reduces User community Process Modeling not fulfilling the role as the focal point of Business Innovation & Transformation 7
Focal Point of Business Innovation & Transformation 8
Focal Point of Business Innovation & Transformation Business Architect Business Intelligence Business Analyst Process Expert Information Expert Information Architect Enterprise Architect Software Developer Software Architect Strategist Executive Software Expert HR Expert Service Expert Service Architect Data Architect Application Architect 9
Best Practice Approach Can Process Modeling ever be the focal point of Business Innovation & Transformation? YES! So what should you look for in a Process Modeling solution? Support Industry Leading Enterprise Architecture methodology Notation that is understood by all levels of user Concise at the Business Level, detailed at the Implementation Level Rich Task Types for Service, Rule Modeling and Report definition, etc. Business, Information and Data Object abstractions 10
Best Practice Approach So what else should you look for in a Process Modeling solution? Must create/enable Enterprise Model Objects and Relationships for Impact & Gap reporting Must support KPIs/PPIs in context of Flow Must have What If Analysis (i.e., Process Simulation) Must have Process Monitoring capability 11
Best Practice Notation Standard BPMN 2.0 Standardized and concise visual understanding Simple Standard Objects Common Visual language for all user personas Best Practice usage/modeling evolution Ability to add varying levels of detail to model Advanced Flow Control Behaviors Activity Task Types, Data Objects, Etc. Links to Implementation & Data Interchange Semantics to support Process Model Execution BPMN 2.0 XML, XPDL 2.2 12
Best Practice Notation Standard BPMN 2.0 Basic Visual Elements Events, Gateways and Activities Pools, Lanes, Sequence and Message flow Activity Task Types Human (User, Manual) Automated (Web Service, Script) Message (Send, Receive) Decision (Business Rule) Data Object artifact 13
Process Modeling Practitioners Process Modeling (BPMN 2.0) can: Capture Business Process, Steps and Activities Specify Tasks Indicate involved Roles (resource) Define Process Rules Classify automated Services (web service) Capture Data Objects (data entities and data components) The practitioners involved Process Expert Business Analyst SW developer Information Expert 14
Process Modeling Practitioners Process Modeling (BPMN 2.0) can: Capture Business Process, Steps and Activities Specify Tasks Indicate involved Roles (resource) Define Process Rules Classify automated Services (web service) Capture Data Objects (data entities and data components) Process Modeling (BPMN 2.0), can not Specify the difference between manual and automated Tasks Specify the difference between manual and automated Services Link to Strategies Define Relationship between Business Competencies and Processes Specify Measurements Define Rulesets (business, application, etc.) Define decisions based on the number of given conditions/actions Classify Business Objects of any kind Specify Information Objects The practitioners involved Process Expert Business Analyst SW developer Information Expert SW & Information Expert Service Expert & Service Arch Strategist, Business Arch Business Architect, HR experts Executive, BAnalyst, BArch BAnalyst, B & Enterprise Arch, BAnalyst, B & App Arch, BIntel Business Arch & Enterprise Arch Information /Data Arch & BIntel 15
Enhancing the Standard Can BPMN 2.0 address all of these Modeling Constituencies? There are a few issues But they can be solved 1. Extend to normalize the Service distinction to enable Service Modeling: Service Architecture Service BPMN 2.0 Task Type Service (provides something of value) vs. (Automated Task using Web Service) 2. Extend to support Business Rules Modeling and Reporting Points (KPI/PPI) 3. Extend Data Object concept to support Business and Information Objects 4. Support for Strategy, Business Competency, and KPI/PPI links to Activities 16
Enhancing the Standard Good News! BPMN 2.0 Standard is Extensible igrafx 2013 has resolved the distinction issue with Service : Existing BPMN Task types: Manual Task Automated Task (was Web Service ) Extended BPMN Task types: Manual Service Automated Service 17
Enhancing the Standard igrafx 2013 also has: Added support for Reporting as Task Type Added descriptive Rule Modeling Task Types Added support for Business & Information Objects 18
Applying Extended Process Modeling Enable Business Innovation & Transformation using LEADing Practice Modeling with igrafx 1. Capture Business Strategy 2. Recognize Competency Gaps 3. Identify Transformation and Innovation Opportunities 4. Prioritize Actions for Change 5. Create & Enhance Process Models using Extended Process Modeling Notation 6. Analyze Impact 7. Run What if scenarios 8. Effect Change 9. Monitor Results 10. Repeat 19
Capture Business Strategy 1. Strategy Map (SBOs, CSFs, KPIs) 2. Role Map 3. Strategy Model 4. KPI/Ownership Gap Analysis 20
Strategy Map 21
Strategy Model Who is Responsible? 22
Strategy Owner Gap Which KPIs have no Responsibility? 23
Recognize Competency Gaps 1. Add Business Competencies to Strategy Map 2. Link Business Competencies to Strategies/KPIs 3. KPI/Competency Gap Analysis 24
Strategy/Business Competency Map 25
Business Competency to KPI Modeling 26
KPI/Competency Gap Which KPIs can t be fulfilled? 27
Identify Opportunities 1. Add Business Process Activities to Strategy Map 2. Link KPIs (and therefore BCs) to Activities 3. KPI to Activity Gap 4. Business Model Opportunity Identification 28
Strategy/Competency/Activity Map 29
KPI to Activity Modeling 30
KPI/Activity Gap Which KPIs can t be Measured via a Process? 31
Identify Opportunity from Business Model Identify and Prioritize based on KPI locations 32
Model and Analyze 1. Use Extended Process Modeling Notation to enhance models Include Business/Information/Data Objects Identify Tasks and Services (Manual or Automated) Include Roles and Rules Identify PPIs in support of KPIs 2. Impact & Gap Analysis 3. What If Simulation & Analysis 33
Unmonitored: Standard BPMN 2.0 34
Enhanced: Add Operational Details 35
Use Extended Task Types 36
Manual Services 37
Automated Services 38
Service Reporting 39
Business Rules 40
Business Rule Flow Enhanced: Business Rule Flow 41
Business Rules 42
Business Rule Reporting 43
Business, Information, Data Objects 44
Business, Information, Data Objects 45
Business, Information, Data Object Flow Reporting 46
Measurements, KPIs, PPIs, Reports 47
Measurements, KPIs, PPIs, Reports 48
What If Scenario: Cost Cutting Opportunity Scenario: Change must be done to Achieve Cost Cutting KPIs and PPIs 1. Identify Proposed changes Reduce Resource Duplication in Call Center 2. Evaluate Effect on PPIs using What If Analysis 3. Monitor Using Scorecards/Dashboards/Cockpits post change 49
Analyze/Simulate Existing Model Prior to Cost Cutting Changes 50
Simulated PPI Values Prior to Cost Cutting Changes 51
Cost Cutting Opportunity Resource Duplication 52
Cost Cutting What If To Be Changes 53
Simulated PPI Values To Be Changes Cost Cutting Impact 54
Monitor PPIs Cockpits Define Cockpits to view PPI data Real Time 1. View cross dependent PPIs to make sure one optimization has not negatively affected another PPI 2. See historical effect of changing PPI Targets 55
Monitor PPI Actuals Cost Cutting Impact 56
Monitor KPIs Scorecard Rollup Define Dashboards/Scorecards 1. Rollup and Visualize status of SBO/CSF/KPI based on PPIs 2. Drill Down to specific PPIs to see Root Cause 57
Monitor KPIs Scorecard Rollup 58
Monitor KPIs Drilldown to PPIs 59
Enabling Business Innovation & Transformation Extended Process Modeling Business Process Flows with Common Visual Language Support for EA objects unreachable by standard Process Modeling with BPMN 2.0 Gap & Impact Reports Simulation and Analysis to manage looking forward Scorecards, Dashboards, Cockpits to maintain control IS the focal point of Business Transformation Use SBOs and CSFs to Prioritize Opportunities Apply Business Competencies to achieve KPI objectives Leverage Models to apply Positive Change Monitor and Evolve Strategies, Goals and Objectives 60
Ed Maddock VP of Development and Process Management Solutions 61