Thinking in Processes

Thinking in Processes
Peter Matthijssen
A practical guide to process management

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Thinking in Processes
A practical guide to process management
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.
Cover image copyright 2013 by BiZZdesign
For information:
BiZZdesign
The Netherlands
E-mail : info@BiZZdesign.com
Web : www.BiZZdesign.com
Phone : +31 (0)53 - 4 878 151
To order books or for customer service please contact us.
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.
BiZZdesign: designing your business is our business

BiZZdesign offers complete and integrated solutions to design and improve organizations. These
integrated solutions consist of proven and easy to use tools, best practice models and methods,
training and business consultancy services.
BiZZdesign solutions include:

Process management
Process design and improvement
Structured implementation and governance
Enterprise architecture management
Business requirements management
Lean management
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
Part 1 Thinking in Processes:......................................................................................... 15
1.1 What is a process?................................................................................................. 17

1.2 The process view.................................................................................................... 18
1.3 Business Process Management ............................................................................ 20
1.4 BPM: People versus Technique.............................................................................. 22
1.5 BPM: Processes and IT.......................................................................................... 24
1.6 BPM: The surroundings of the process .................................................................. 26
1.7 Levels of BPM......................................................................................................... 28
1.8 BPM and management........................................................................................... 29
1.9 BPM and process models....................................................................................... 31
1.10 BPM for whom?...................................................................................................... 33
1.11 BPM and Enterprise Architecture............................................................................ 35
1.12 The business case of BPM..................................................................................... 37
1.13 Conclusion.............................................................................................................. 39
Part 2 Process Control.................................................................................................... 41
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
Part 4 Process Design..................................................................................................... 73
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
About the author................................................................................................... 86
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. Thats what this book is all about.
Peters 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.
Roger T. Burlton, P. Eng, CMC

Chief Consultant: BPTrends.com
Author: Business Process Management: Profiting from Process
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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 doesnt mean that before that there werent 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.
We differentiate three levels of process management:

Process control Part 2
Process improvement Part 3
Process design / innovation Part 4
These chapters will give an introduction to the various levels. Moreover, an accompanying best
practice approach is included.
Succesful performance of organizations is comparable to climbing a mountain. It all starts with

a plan; where do we want to go and how do we want to get there? (part 4: Process design and
innovation). A good preparation, with the right tools and materials, is essential (part 1: Thinking in
processes). Then our climb can start; we need hard work and teamwork to achieve results (part 2:
Process control). And sometimes an extra effort is necessary to reach the top (part 3: Improvement
of processes).
The figure below illustrates the different levels of process management.
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.
1.1 What is a process?

In literature many definitions of the word process can be found. Lets take a look at a few:
...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.
In this book we will use the following definition:
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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1.2 The process view

If you ask people to draw out their organization, then there is a big chance they will draw a chart
with directors at the top, in the middle staff departments (marketing, HRM, finance) and below the
various line departments such as purchasing, production and sales.
Profit
HRM FINANCIN
MARKETING
PURCHASE PRODUCTION SALES
Figure 1.1: Organigram
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
Purchasing Production Distribution Sales
Figure 1.2: Task oriented view
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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
Purchasing Production Distribution Sales
Figure 1.3: The process view
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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1.3 Business Process Management

Lets GOOGLE BPM:
BPM, in this context, of course stands for business process management. Lets take a look at the
term BPM word for word:
Business: The whole of human interaction in an organization for a customer
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]
Management: Controlling, facilitating and guiding as a whole
Below are several definitions of Business Process Management from theory:

BPM is a management discipline that treats processes as assets that directly contribute to enter-
prise performance by driving operational excellence and business agility [Gartner, 2009]
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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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
Figure 1.4: The process flower
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1.4 BPM: People versus Technique

Lets take a trip to the race track. The results of races are often determined by pit-stops, where in
less than eight seconds, the wheels are changed, fuel is pumped into the car and the drivers visor
is cleaned. Eight seconds is really short and the stakes are high. Even the tiniest mistakes cost time
and perhaps even the winning of the race.
Figure 1.5: Pit-stop
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
Figure 1.6: Technological en human success factors
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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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1.5 BPM: Processes and IT

Information and Communication Technology (IT) has become indispensable for many organiza-
tions. IT supports the processes in many areas and sometimes even parts of processes are fully
automated. More and more organizations derive their very existence from IT. For optimal use of IT a
strong cooperation between processes and IT is essential. But how does this collaboration work?
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 shouldnt 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?
Legislation (Technical) developments

Competitors
Globalisation
Compliance
Norms
Customer demands
Strategy
IT IT
Process, people & organization
Figure 1.7: Process and IT (1)
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 90s on the success of ERP (Economic Resource Planning)
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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 Hammers 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.
Leglislation (Technical) developments

Globalisation Competitors
Compliance
Norms
Customer demands
Strategy
Process, people & organization
Inspire
IT IT
Figure 1.8: Process and IT (2)
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1.6 BPM: The surroundings of the process

When we talk about processes then the emphasis is quickly put on the activities that are executed.
The previously discussed definitions of processes endorse this as well. Yet its good to broaden this
focus. Particularly the surroundings of the process strongly determine the success of processes.
The IGOE model, developed by Roger Burlton, supports this.
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.
Figure 1.9: IGOE model

Input & Output
Input is the collective name of all input components of a process. Input supplies the ingredients ne-
cessary for the process to get up and running, so that an output can be provided. Input may consist
of raw materials or intermediates, but also information such as a completed application form. Out-
put is the result for the customer, delivered by the process. To receive input and provide output, we
depend on the external environment such as suppliers and customers. The behavior of this external
environment is not always predictable and problems found in the process could have a source at
the input (or output). For example: a customer hands in an incomplete application.
Interactions with the external environment can occur in several ways. Examples of channels:
Internet
Telephone
Shop
Fax
Post
Social media
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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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1.7 Levels of BPM

We have seen that different activities are bundled together in BPM. But which activities and techni-
ques need to be applied and when?
Lets distinguish between three different levels for BPM:

1. Process Insight: introduction of BPM and process view
2. Process control: continuous control of processes
3. Process improvement: improvement of processes in project form
4. Process (re)design: designing processes in project form
Innovate
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 isnt 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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1.8 BPM and management

I want to start with BPM, but my manager doesnt think in processes. Perhaps this is a recogni-
zable scenario. Lets take a look at subjects that are important to management.
Heres a selection:
Increasingly quality demands
IT is becoming more complex and correspondingly expensive
Outsourcing of work
Larger risks
Controlling of complex organizations
Pressure on cost reduction
Many projects
Grip on risks
Many projects
Complex
Rising quality IT
norms
Rising
IT costs
Outsourcing
Flexibility Control
Cost
reduction
Figure 1.11: What is on a managers mind?

Of course these are all important topics. However the word process is not found in this list. So are
processes just not important to management?
If we take a closer look at the abovementioned topics then we see that they actually have every-
thing to do with processes:
Quality demands: What is important to the customer? Processes from customer to

customer.
IT: How and where do we use the enabler IT in our process?
Outsourcing: Where are the splits in the process?
Risks: Where are the risks in the process?
Control: Where in the process do we use performance indicators?
Costs: Where are the bottlenecks and waste in the process?
Projects: Projects are an instrument to change/improve processes
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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
Figure 1.12: Processes in the center
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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1.9 BPM and process models

Many people associate process management with documenting processes in process models.
However, we have seen that BPM is much broader than that. Process models alone will not help
organizations to improve their performance. BPM is based on a vision where processes form the
heart of the organization and are connected with other disciplines. BPM is all about linking: the
process flower allows for an integrated view of the activities, performance and initiatives within an
organization.
Figure 1.13: Example of process model [BiZZdesigner]
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.
31
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.
Some general principles for achieving good process models are:

Ensure that the model has a purpose. What do you want to achieve with the model?
Ensure that the process model meets the expectations of the stakeholders. Who are
they? What do they want/ need?
Choose a model type and modeling technique that matches the goal
Do not add more information to a model than necessary
Follow the modeling guidelines of the organization
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.
32
1.10 BPM for whom?

We have seen that all organizations deal with processes. Processes are everywhere. The approa-
ches and techniques of BPM, as will be discussed in the following sections of this book, are there-
fore potentially interesting for everyone. However, not all organizations equally benefit from actively
managing their processes. This has everything to do with the way companies earn their money.
We can distinguish between various types of organizations:

A Organizations focused on repetitive activities.
Of course, hereunder we place production companies (production of cars, food, etc.).
However, also organizations in the service sectors that process mass data (banks,
insurers, hospitals) and numerous governmental agencies (Tax, municipalities) perform
repetitive activities.
B Organizations that mainly work on a project basis.
These are companies that accept construction projects and technology consultancy
organizations (ICT) that work on a project management basis tailored to specific custo-
mers.
C Improvising organizations
This third group focuses on developing something new, for example R&D organizations.
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.
33
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.
34
1.11 BPM and Enterprise Architecture

Enterprise Architecture (EA) is a discipline embraced by more and more organizations. EAs goal is
to provide insight into a complex environment and allow for better management of the organization.
A comparison can be made with the building industry. With numerous drawings and related analy-
ses, the architect has a firm grasp on the complex construction of a skyscraper. The architect has
the insight to assess the impact of changes to the design, such as building an additional storey. Also
the architect can test the functionality of a design in an altered environment, for example during a
violent storm.
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?
35
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
Drafting Principles Applying principles

Abstract and aimed at overview Concrete: optimization of IGOE
&
Coherence between Information Organization sets process, process

flows, applications and infrastructure drives ICT
Aims at internal and external Aims at a limited number of

developments developments
Complexity is high Applicability is large
Integrated conceptual
framework, process,
Products, Roles
Figure 1.14: Collaboration of EA and BPM
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).
36
1.12 The business case of BPM

Initiatives for process insight, process control, process improvement or process design all cost
money. Of course this is an investment, but for whom? Many BPM methods are targeted at the cus-
tomer. Delivering good quality for the customer is crucial for maintaining a competitive advantage,
so BPM investments are often seen as investments for the customer. It is forgotten that increased
quality also generates money for the organization. This makes BPM even more interesting!
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?
Process Inspection Customer
Fallout Complaint
Repair work handling
Hidden
factory
Correction costs
Inspection costs
Prevention costs
Figure 1.15: The hidden factory
37
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
Focus on costs Focus on quality

Figure 1.16: Quality and costs
However, there is an alternative approach. Increasingly, organizations are investing in preventi-

on. This means that they want to have a firm grip on the critical processes in their organization.
They invest in assuring performance with process control and project-based process improvement
(BPM).
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.
Focus on costs Quality goes down

Focus on Quality Costs go down
Willem van Oppen
38
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, its 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
40
Part 2 - Process Control
Part 2: Process Control
41
42
2.1 Introduction
In part 1 the various levels of BPM were introduced. With process control we dont 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
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? Isnt 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.
43
2.2 When to do process control?

The performance of processes is continually under pressure. The quality must improve, the turna-
round time should be shorter and / or the process needs to be cheaper. This can lead to drastic
measures: The process is not good, so lets design a new process.
Redesigning sounds nice. Without impeding on the current process, it is designed all over again
from scratch. However, the results of these redesign projects arent 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 dont 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.
Optimal control as a basis for controlled optimization

Jeroen de Groot
44
2.3 Approach for process control

In order to perform process control the following best practice approach1 was developed. This
approach consists of seven steps:
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

An important first step for process control is process identification. Which end-to-end processes are
present in our organization? Without this insight we cant proceed with the following control steps.
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.
Step 2: Process ownership

Once the processes have been identified, the next challenge is to set responsibilities.
Why should we set process responsibilities?

In part one we differentiated between vertical view (task oriented) and horizontal view (process
oriented). Companies are generally vertically organized and therefore the responsibility of a ho-
rizontal end-to-end process often is divided over the various operating departments. If something
goes wrong in the process however, a discussion about responsibility and the question of who
made a mistake is not desired. Furthermore, mistakes and issue often occur at the switching points
of the departments. Waiting time is also an issue that often occurs between departments.
By setting the responsibilities in a process in a horizontal way, many problems can be

avoided. If something goes wrong, the responsibility is clear. There is one contact point for the
1) Beter presteren met processen (2007), Rob Kroese, Jeroen de Groot, ISBN 978-90-809722-5-4
45
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.
How to set process responsibility?

Setting responsibilities for end-to-end processes is powerful, but achieving this is often cumber-
some. How do we attain process responsibility?
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.
46
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.
Step 3: Documenting Processes

Thinking about BPM, many people immediately think about procedures and process models. Docu-
menting a process is certainly an important aspect of BPM, but is always part of a bigger plan. We
shouldnt document information about a process because we have to, but because its useful. After
all, documenting processes is costly and time consuming.
When is it useful to capture processes?

Is it important to document a yearly, major airplane engine maintenance process?
Probably and preferably at a good level of detail. The risks and consequences of forgetting a step
in the process are big.
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 isnt 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
Which processes should be managed?

If we decide to document information about processes, and therefore also choose to maintain this
information, then we do this deliberately. There are various tools that can help us to take appro-
priate control measures for processes. The first one is a decision tree for process control. The
layers of the tree are formed by criteria: why would we want to control a process?. For example
financial risks: If the process goes wrong, then it will cost more than 10,000 Euro. The impact of
failures to the customer can also be included: If the process goes wrong, then the customer will be
(indirectly) affected.
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.
47
The figure below gives an example of a decision tree for process control.
Process Is there a direct customer

contact?
Yes
No
Is there an indirect customer
contact?
Yes
No Process has
Is there a financial risk of to be
more the 20.000 euro?
Yes
controlled
No
Is (part of ) the process
outsourced to a third party?
Yes
No
Legislation demands
process control?
Yes
No
No specific requirements
for control
Figure 2.2: Decision tree process control2
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.
2) based on presentation BPM conference Heliview 12 oct 2005 by Jeroen de Groot
48
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.
3) based on presentation BPM conference Heliview 12 oct 2005 by Jeroen de Groot
49
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.

The first four steps of process control are aimed at awareness, responsibility, standardization and
securing. The next steps are aimed at the performance of the process. To gain insight into the cur-
rent performance, we evaluate the process. By measuring the process in certain areas, insight is
gained about quality, errors, delays, etc.
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 (PIs) that provides us with
information on the performance of the process.
A proven way to develop good PIs 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)
50
We call these interests external quality factors (External Critical to Quality; E-CTQs). In order to
create PIs, these factors need to be translated into internal quality factors (I-CTQs). These are
things that can be measured in the process.
Example of I-CTQs:
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 PIs.
Customer Management Employee Stakeholders
Work
External
Quality Speed Costs
pressure CTQs
Number of Turnaround Fall out Hours Absenteeism Internal

complaints time overtime
% %
CTQs
#/month Hours/prod Hours/empl/month
Figure 2.4: CTQ flowdown
The measured results of the PIs 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)..
51
Figure 2.5: Control chart with peaks outside the control limits

Step 6 is a logical continuation to the previous step. The results of the PI measurements provide
a picture of the performance of the process. If these are insufficient, then we want the process to
perform better. An important instrument for this is controlling.
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 PIs 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.
52
The responsibility for PIs is essential when working with PIs. 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 PIs 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 PIs.
Figure 2.6: Riskmanager [BiZZdesign]
Step 7: Continually improving the process

Step 7 is the ultimate level of process control. Organizations that control their processes at this
level, have a grip on their processes:
Process thinking is widely accepted in the organization, from management to employee
The procedures are transparent: processes are defined, described and uniform imple-
mentation occurs according to the process descriptions
The responsibility for processes is vested: process ownership
The performance of the processes are clear: continuous measurement of (the right) PIs
Control is calibrated: PI owners have been appointed and control scenarios are drawn
out
53
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.
54
2.4 Getting started with process control

This part discussed an approach for process management. Organizations get a grip on their pro-
cesses in 7 steps. To set up these steps energy and direction from management is necessary.
Experience shows that this energy can be a big investment initially, but eventually will pay off. We
can speak of a three part division: MUST REST TRUST.
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
Some tips for process control from practice:

Be enthusiastic!
Ensure support from management thinking in processes. Convince them of the bene-
fits and need for the organization.
Assign process responsibility (step 2). This is often not an easy step. However with
process responsibility in place, the next steps are much easier.
Describe only the processes for which this is useful (process box of marbles)
Describe processes at the right level of detail (process pyramid). Do not document all
processes in procedures.
Show that it works. Focus on the places where process control is most needed.
Ensure that BPM initiatives and successes are visible in the organization.
55
56
Part 3 - Process Improvement
Part 3: Process Improvement
57
58
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 BiZZdesigns advisory work.
59
3.2 When to improve processes?

Earlier in this book it was stated: Optimal control as the basis for controlled optimization. Suc-
cessful process improvement needs a certain level of process control. But does this mean that all
seven previously mentioned steps need to be completed before process improvement can begin?
No, definitely not. The first steps of process control are important for process improvement. When
projects fail, this is usually because of badly set boundaries (unclear or large scope) and bad
support or ownership. Steps 1 to 4 of the approach for process control provide demarcation and
process responsibility.
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.
60
3.3 Methods for process improvement

There are various methods for process improvement. In this section the Six Sigma and Lean Ma-
nagement methods will be described. Increasingly, organizations in various sectors are implemen-
ting these methods for improving their processes. Here we see many variations and combinations
of methodologies, including Lean Six Sigma.
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.
Steps in an improvement project according to Lean Management:
1. Determine which activities add value

The internal and external customers determine which activities add value to a product and/
or service. Value is defined as the degree to which a specific product or service meets the
customer requirements. In organizations, many activities add little or no value for the customer.
Figure 3.1: Value Stream Map [BiZZdesigner]
61
2. Determine the sequence of activities

The process is formed by putting all of the activities that add value in order. In so-called Value
Stream Maps the value stream is visualized.
3. Improve the flow

Flow is the continuous movement of products / services. As soon as products are not mo-
ving, inventory is generated in the process. According to Lean these inventories are one of
the largest forms of waste. By keeping a continuous flow, stock, waiting times and turnaround
times are reduced.
4. Make processes flexible and allow them to be governed by the customer

It is important to respond to all of the needs of the customers. Lean tools help for the delivery
of products and services at precisely the moment that customers need it. This puts demands
on the process design.
5. Perfect the process remove waste

Lean management is a continuous process. In successful Lean organizations employees are
continuously working on improving the flow and the satisfaction of end customers. Activities
that add no value as well as other forms of waste are immediately identified for improvement.
62
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 () is a mathematics symbol for the degree of varia-
tion. A level of 6 represents extremely little variation. For many organizations a level of 6 is not
feasible or desirable; 6 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.
Steps in an improvement project according to Six Sigma:
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.
63
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
Figure 3.2: DMAIC phases of Six Sigma
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 cant 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).
64
The choice between Lean Management and Six Sigma depends on:
Whats right for the organization (culture, desired speed, budget)
Whats 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
-/- Impact on organization

Figure 3.3: Strength diagram Lean Management and Six Sigma
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.
65
3.4 Best practice approach 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 wont deliver the desired results.
66
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.
Step 2: Identify problems

How good are people at identifying problems? There is much talk about problems. However, what
we see a lot is that problems, symptoms, issues and solutions are confused with one another.
Also, many people prefer to think in solutions instead of problems: if we would just During an
improvement project, however, it is important to discover the root causes of problems. If these are
known, then we can focus on solving the problems. Energy shouldnt be wasted on fighting the
symptoms.
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, its 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.
67
Histogram of age
Normal
12
10
8
Frequency
0
12 14 16 18 20
Age
Figure 3.4: Example Histogram [Minitab]
Step 3: Determine quick wins and waste

Our approach for improvement requires the step of generating solutions (Step 5) after a thorough
analysis of the causes (Step 4). Yet it may be possible that during measurements bright ideas can
directly be used to (temporarily) remove a problem without too much effort. These quick wins are
definitely worth paying attention to. However, keep an eye on the main focus of the project. Make
sure this focus wont shift to the implementation of quick wins that subsequently prove not to be so
quick and winning.
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.
Some common forms of waste are:

Transportation
Movement
Unnecessary work
Repetition
Waiting time
Complexity
68
Waste is everywhere in organizations. Much waste is hidden within processes. It is possible to

make waste in processes visible with a waste scan. Below is an example. This kind of visual analy-
sis has proven to be very powerful in practice.
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
Figure 3.5: Wastescan [BiZZdesigner]
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.
Step 4: Analyze causes

Based on the measurements made, the current performance of the process can be determined. It is
also possible to get a good picture of the desired performance. Influence factors cause the process
not to perform at the desired level. Therefore these influence factors are also the key to solving the
problem.
We can distinguish between three types of influence factors:

Control variables: adjustable variables in the process that can be manipulated
Noise variables: unwanted sources of variation that should be eliminated, or should be
compensated for
Disturbances: events that are undesirable
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
69
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!
Step 5: Generate and implement solutions

The previous analysis step provides a good overview of the most important influence variables.
These are the causes of the problems. This 5th step takes a look at possible solutions to these
problems. How can we eliminate, adjust or compensate for influence variables?
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. Dont 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.
Step 6: Secure solutions process control

The last step of the improvement project is to assure results and changes within the organization
are secured. Too often we see that within projects improvements are achieved but that this last step
is forgotten. This way the improvements dont last. A controlled situation was the starting point for
the improvement project and should therefore also be the end point.
Innovate
Improve
P
Control R
O
J
E
Isight C
T
Figure 3.6: Control Improve Control
70
In part 2 of this book the topic of process control was elaborated upon. Seven steps were defined
for process control:
Step 2: Investing in Process Ownership
Step 3: Capturing Processes
Step 4: Work!
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 PIs; 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.
71
3.5 Getting started with process improvement
Some tips from practice:

Choose methods and techniques that fit the organization
Focus on issues that negatively affect the organization
Use whats already there
Work according to project guidelines!
Start small
Involve employees
Involve the customer. What are their opinions and experiences?
Invest in the commitment of upper management
Go take a look at a production company at how they apply Lean Six Sigma
Ensure quick and visible first results
Translate results to money
Dont let set backs or resistance be discouraging. Eventually there are always results
Communication: use visual presentations of data and results
Make use of best practices from other organizations
Celebrate successes
72
Part 4 - Process Design
Part 4: Process Design
73
74
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. Theres 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 doesnt 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.
75
4.2 When should we design processes?

We can distinguish between process design (innovation) and process re-design. Organizations that
are going to start something new and do not yet have fitting processes herefore, will have to design
them. Perhaps a company is going to offer a new product or service. The implementation of new
channels or reaching out to new customer groups can also be reasons to start a process design
project. The question of when to design processes? is therefore pretty simple to answer: if we
need a new process.
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 dont want to be held back
by the old process, but on the other hand we are missing out if we dont 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.
76
4.3 Overview of the BPE method for process design

The impact of a process (re)design on the organization is often large. Many important decisions on
various aspects need to be made. The changes will also affect the persons within the organization.
Therefore this isnt just about process improvement (for example, omitting a control measure in the
processes to make it more efficient). It is possible that we need to set up an entire new department
with new personell after a process redesign. A redesign can also lead to the need for a new IT
system causing less manual work. Designing a process in the complex actuality of today demands
a reliable and structured BPE method.
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.
77
develop alternatives nieuw model

nieuw model
new model
Bottlenecks, priorities, measurements
model
model world
Reality
Project Management
Implementation
Planning migrate
Project Communication
target setting,
realisation
Project Scope
(interviews, workshops)
interviews,
workshops
Modelling
existing Migration improved

business business process
process
Figure 4.1: Model based change
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.
Innovation approach where do we want to go?

This approach is aimed at determining the desired renewal or change within the organization. The
approach starts with formulating the general reason and motivation for process design, which is
linked to the business strategy. The result is a portfolio of innovative ideas that are input for analysis
and process design.
Analysis approach where does the crux lie?

This approach is aimed at obtaining a clear picture of the current situation in the organization.
The focus lies on the processes and the existing conditions for the process. We investigate which
factors influence the success of the processes and the organization. This gives insight of where
improvements are needed and possible. Knowledge and the experience of employees are very
valuable during this step. Certainly for a process redesign an investment in a proper analysis will
pay off in the final result.
78
Design approach how to we give shape to the new design?

With new goals, limiting conditions, bottlenecks and successfactors we can give form to the new
processes. Models help us to compare alternative designs. It is useful to include employees also in
the design process. The design approach is further discussed in section 4.4.
Migration Approach how to implement the new process?

In this last step the chosen design is implemented. This may sound simple but in practice this is
the most difficult step. It is crucial that we involve employees that will be effected by the process
change from the beginning. Successful migration is not the final step, but starts from the beginning
of the (re)design project. In this way change becomes a logical next step from the previous design
steps. From a practical point of view this step is directed at developing the resources needed for the
redesign. This means that new IT systems may be developed. Perhaps employees also need to be
educated, which requires the development of training courses and instructions. If all resources are
present we can start up the (re)designed process.
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4.4 Approach for process design

In this section the approach to process design is explained in more detail. The approach includes
the following steps:
Step 1: Determine scope
Step 2: Determine essentials
Step 3: Design process
Step 4: Compare and choose
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.
Step 1: Determine scope

As in every project it is important to start out with delineation. What is the scope of the project and
what are the expectations? Poor delineation can cause delays, unmet expectations or failure of the
project.
Choices need to be made at various levels in regards to delineation. The IGOE layout discussed in
section 1.6 is useful for this.
Input (en output)

Which channels are (or are not) going to be used in the BPE project?
How much input should the process be able to handle?
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. Its 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.
80
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.
Step 2: Determine essentials

When the scope is clear, the essentials are determined. Essentials are elements that will be reused
in all designs. The previous step determined the scope of the redesign based on the IGOE model.
There are constraints set that the redesign must comply with. By making process implications
based on these constraints, we create process essentials.
Some examples of essentials:

Due to legislation (guides) a four eyes principle is imposed.This principle has an im-
pact on the process. A control always needs to be included by another officer.
Management has determined that a job is not affected in the redesign. This means that
the current unchanged position is included in every redesign.
From a strategic perspective, it was decided that the process should both handle phy-
sical flows (such as postal mail) and digital inflow. This means that for each redesign a
scanning step must be included.
The process essentials are the building blocks that will be present in every redesign.
81
Step 3: Design the process

In this third step alternatives of the process design are developed. The process essentials form
the input, but in the remaining design freedom different alternatives can be created. The design
of processes is a creative process. It is the challenge to utilize as much of the design freedom as
possible. This can sometimes be difficult, especially in a redesign project. It is very tempting to fall
back on the current process structure.
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 its 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.
Figure 4.2: Example process simulation
82
Step 4: Compare and select

In step 3 of this approach various alternative designs were developed. In the following step the best
alternative is chosen.
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.
83
4.5 COPAFIJTH-broad design

For a sucessful analyses and implementation it is important that we have a clear picture of actuality.
We do not want to let things slip by due to the complexity of the design process. In various steps of
the presented BPE-method we can use COPAFIJTH. This helps us to keep our eyes open during
the design process and not miss important aspects.
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.
The COPAFIJTH aspects are:

Commerce: To what extent are customers and the commercial ambitions of the orga-
nization affected? (For non-commercial organizations Commerce is often replaced by
Communications)
Organization: What is the impact of a redesign on the structure of an organization?
Personnel: What are the implications on staffing?
Administrative Organization: Which changes are there in the way of working and proce-
dures in the organization?
Financial: What are the financial implications of the redesign?
Information: What information needs are associated with a redesign?
Juridical/ Legal: Are there legal issues that need to be considered?
Technology: Which technological changes are needed for the redesign?
Housing: Is there any impact on facilities/ facilliatory services in the redesign?
COPAFIJTH is a powerful instrument. COPAFIJTH, for example, supports with impact-of-change

analysis for various redesigns. Different redesigns will have a differing impact on the COPAFIJTH
aspects.
84
4.6 Getting started with process design

Some tips from practice:
Think carefully before starting a real (re)design process. Is a (re)design really neces-
sary? Maybe its better to first start with process control or improvement?
Invest in a good analysis of the current situation. This information is powerfull and will
result in better redesigns.
Invest in good reporting of designchoices and good project documentation.
Invest in communication, not only in the implementation phase, but also in the stages
before. Successful implementation starts at the very beginning of the design process.
Be prepared for resistance.
Make use of process models. These greatly assist in analyzing and comparing designs.
Additionally they support communication.
While designing, also think about the control of the process (part 2). Which critical steps
do we want to monitor (PIs) and how are we going to manage the process?
Use the COPAFIJTH analysis. It ensures a complete picture on important aspects that
could be affected in een redesign.
85
About the author
Peter Matthijssen is an engineer with a background in Industrial Engi-

neering & Management. He works as a consultant and trainer at BiZZ-
design, helping organizations with process management topics. In his
work he aims at making organizations stronger, as well as developing
its employees. BPM methods and techniques are supportive hereby.
In the end it are the organizations, with their employees, that need to
change to improve.
As a Lean Six Sigma black belt Peter helps organizations to develop

and be successful in process improvement. Also Lean Six Sigma is
not a goal, but a method. The techniques should fit the organization.
Eventually they should deliver results for the organization and create
enthousiasm by the staff.
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].
86
References
Business Process Management: Profiting from Process (2001)

Roger T. Burlton, P. Eng, CMC
BPTrends
Beter presteren met processen (2007) [Dutch]

Rob Kroese, Jeroen de Groot
BiZZdesign
Processenwerk = Mensenwerk (2010) [Dutch]

Jackelien Barelds
BiZZdesign
Kwaliteitsverbetering van processen (2008) [Dutch]

Peter Matthijssen
BiZZdesign
Handboek Business Process Engineering [Dutch]

Harmen van den Berg, Henry Franken, e.a.
BiZZdesign
No Grip no Glory [Dutch]

Jeroen de Groot
Array publications
Lean Six Sigma for Service and Healthcare

Jeroen de Mast, Ronald Does, e.a.
Beaumont Quality Publications
87
88
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
There are many good books about Business Process Manage-

ment, if you have enough time to read them. This book is a
welcome exception. It will help you to understand the essence
of BPM in a short amount of time. Ton Mulders - Vice Presi-
dent ABN AMRO Bank N.V.
This book will enable you to establish good performing proces-

ses and think positively toward processes.
Frits Bussemaker - Founder BPM-Forum, the Netherlands
A must read! Jeremy Hall - Managing Director, IRM UK

Strategic IT Training Ltd
BiZZdesign Academy
Phone + 31 (0) 53 4 878 151

Fax + 31 (0) 53 4 878 161
E-mail info@bizzdesign.com
Internet www.bizzdesign.com
BiZZdesign Academy, 2013

ISBN: 978-90-79240-10-4
BiZZdesign www.bizzdesign.com

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Thinking in Processes

A practical guide to process management

Cover image copyright 2013 by BiZZdesign

BiZZdesign: designing your business is our business

BiZZdesign solutions include:

Part 1 Thinking in Processes:......................................................................................... 15

1.1 What is a process?................................................................................................. 17

Part 2 Process Control.................................................................................................... 41

Part 4 Process Design..................................................................................................... 73

About the author................................................................................................... 86

Roger T. Burlton, P. Eng, CMC

We differentiate three levels of process management:

Succesful performance of organizations is comparable to climbing a mountain. It all starts with

The figure below illustrates the different levels of process management.

Part 1: Thinking in Processes:

1.1 What is a process?

In this book we will use the following definition:

1.2 The process view

PURCHASE PRODUCTION SALES

Figure 1.1: Organigram

Purchasing Production Distribution Sales

Figure 1.2: Task oriented view

Purchasing Production Distribution Sales

Figure 1.3: The process view

1.3 Business Process Management

Business: The whole of human interaction in an organization for a customer

Management: Controlling, facilitating and guiding as a whole

Below are several definitions of Business Process Management from theory:

Figure 1.4: The process flower

1.4 BPM: People versus Technique

Figure 1.5: Pit-stop

Figure 1.6: Technological en human success factors

1.5 BPM: Processes and IT

Legislation (Technical) developments

Process, people & organization

Figure 1.7: Process and IT (1)

Leglislation (Technical) developments

Process, people & organization

Figure 1.8: Process and IT (2)

1.6 BPM: The surroundings of the process

Figure 1.9: IGOE model

1.7 Levels of BPM

Lets distinguish between three different levels for BPM:

1.8 BPM and management

Figure 1.11: What is on a managers mind?

Quality demands: What is important to the customer? Processes from customer to

Figure 1.12: Processes in the center

1.9 BPM and process models

Figure 1.13: Example of process model [BiZZdesigner]

Some general principles for achieving good process models are:

1.10 BPM for whom?

We can distinguish between various types of organizations:

1.11 BPM and Enterprise Architecture

Drafting Principles Applying principles

Coherence between Information Organization sets process, process

Aims at internal and external Aims at a limited number of

Complexity is high Applicability is large

Figure 1.14: Collaboration of EA and BPM

1.12 The business case of BPM

Process Inspection Customer

Figure 1.15: The hidden factory

Focus on costs Focus on quality

However, there is an alternative approach. Increasingly, organizations are investing in preventi-

Focus on costs Quality goes down