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Business Process ArchitectureManaging with Precision
Presented by BettyLynn Mueller
IIBA Winnipeg Chapter Event
Thursday, February 9, 2017
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Agenda Process Architecture
What, Why, How
Components of an Architecture
Government Example
At a Glance
Result and Value
Process Architecture Governance and Considerations
Business Architecture – Industry Perspective
Questions
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Business Process Architecture – What is it?
“Process Architecture recognizes the organization as a
system of interacting processes that work together
to maximize the effectiveness of the whole system.”
(Harmon)
In general terms, business process architecture
specifies how an organization gets work done and
provides the ability to manage change in a holistic
manner
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Process Architecture – What it is!
Architecture work products are displayed
in business models and high level
descriptions supporting decision-making
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Process Architecture – What it is!
Consists of:
a clear picture of the mandate (strategic
intent) of the organization
Depicts how the business is organized
Identifies how the work is performed
Describes how it creates value for the
customers and all the stakeholders
involved
Supports the goals the organization is
trying to achieve and
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Process Architecture – What it is!
A business process architecture model:
Provides a holistic view of the organization
Gives everyone one canvas to work from
Aligns processes to key stakeholders, services and products
Provides a basis for performance management
Is consistent with general process management guidelines
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Process Architecture - Why
Enterprises are concerned with understanding and
managing all the moving parts of their organizational
components within their scope ensuring:
understanding all of the parts of an organization in a
consistent fashion
integration of the moving parts internally and
externally are managed holistically
They know whom they need to work with, and
they know what they need to communicate to in
respect to the parts
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Process Architecture - How
Phase 1: Understand the Enterprise
Determine the value chains and key relationships
with the stakeholders
Evaluate, assess, and classify the process work and
organizational management documents Phase 2: Define the Business Process Architecture
Align the processes into the process framework
Align management practices and current operations into the Process Framework.
Phase 3: Refine Process Governance
Manage the business processes and process framework.
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Process Architecture - How
Phase 1: Understand the Enterprise
Determine the value chains and key relationships with the stakeholders
Evaluate, assess, and classify the process work and organizational management
documents
Phase 2: Define the Business Process Architecture
Align the processes into the process framework
Align management practices and current operations
into the Process Framework. Phase 3: Refine Process Governance
Manage the business processes and process framework.
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Process Architecture - How
Phase 1: Understand the Enterprise
Determine the value chains and key relationships with the stakeholders
Evaluate, assess, and classify the process work and organizational management
documents
Phase 2: Define the Business Process Architecture
Align the processes into the process framework
Align management practices and current operations into the Process Framework.
Phase 3: Refine Process Governance
Manage the business processes and process
framework.
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Process Architecture – Components
Comprised of three main process categories
Guiding/Managing
Core
Enabling Supporting
Level of iteration is determined by scope of
enterprise
High Level Organization is concerned with
Process Levels 0-2
Refine based on level of organization in
focus
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Guiding/Managing Processes: provides directions, rules and
practices to follow. Processes related to planning, organizing,
communicating, monitoring and controlling the activities of an
organization.
Core Processes: processes directly linked to the customer
(the widgets). These processes generate products and
services and relate to what customers are willing to pay for.
Also considered the value chains of an organization.
Enabling/Supporting Processes: provide the resources used by
the other processes. These processes relate to the people, the technologies, and the physical locations required to do business.
Process Architecture – Components
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Business Process Architecture
Government Example
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Government Example
Enabling/Supporting Processes
Provision Public RelationsProvide Enabling Business Systems and/or TechnologiesProvide Facilities for Conducting Business
Provide Workforce Capability
CORE/Customer Processes
Guiding/Managing Processes
Monitor the Organization
Plan the Strategies and Objectives
Ministry of the Economy Process Architecture for Oil and GasType: Functional Decomposition Diagram
Version: 2
Created By: Royer, Bruce ER on 28/10/2013 4:18:09 PM
Last Modified By: Royer, Bruce ER on 29/10/2013 8:33:24 AM
Description
This document outlines the Guiding and Enabling processes of the Ministry as a whole. It also depicts the core/customer processes of
the Oil and Gas sector.
Develop Ministerial Plans
Create Policies (Energy and Resources)
Develop Budget Proposals
Develop Communication Plans
Align to Provincial Strategy
Develop Service Offerings Develop Fiscal Regimes
Manage Performance Against Plans
Manage Budgets
Maintain Process Framework
Manage Employee Performance
Anticipate and React to Market Capabilities
Manage Process Effectiveness and
Efficiency
Regulate Infrastructure
Manage Risk
Manage Industry Satisfaction
Develop Economic and Revenue Forecasts
Foster Resource Development Manage Compliance and Reporting
Manage Petroleum, Natural Gas, and other Dispositions
Manage Ownership
Promote Investment Opportunities
Provide Geoscience Information (Research)
Calculate and Collect Revenues
Apply Calculations
Provide Details of Owed Amounts
Allocate Revenue Refunds
Collect Receivables
Provide LicencesProvide Technical
ApprovalsManage Reservoirs Manage Facilities Manage Wells
Manage Distribution Networks
Manage Flares/VentsTrack and Manage
Industry SpillsManage Abandonment
(Orphans)
Conduct Field Inspections and Investigations
Attract, Source and Recruit Workforce
Train Workforce
Review, Appraise, and Manage Workforce
Performance
Assess Resource Capacity Requirements
Define Capabilities and Competencies
Develop Individual Resource Objectives
Provide Development Opportunities
Provide Appropriate Work Environment
Plan for Succession of Resources
Provide Service Centres for Customers
Provide Office Resources for Staff
Provision Technology Facilities
Provide Customer Service Systems
Provide Performance Management Systems
Provision IT Service Delivery Capabilities
Provide Business Solution Systems
Provide Communication Systems
Provision IT Service Support Capabilities
Provision Decision Management Capabilities
Provision Networking Capabilities
Communicate with External Stakeholders
Provide Information/Maps/Publications
Communicate with Workforce
Ensure Occupational Health and Safety
Govern the Organization
Develop RACIDevelop Strategic Planning
ProcessDevelop Performance Management Systems
Develop Process Framework
Align to Central Ministry Requirements
Provide Client Relations Services
Provide AssistanceManage Customer Information
Enforce Compliance
Audit Taxpayers
Collect and Verify Information
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Example Continued
Catalogue: Process Definitions
Naming ConventionAPQC Naming
ConventionDefinition Process Accountability
Process
Responsibility
Delegated Process
Champion
Govern the Organization
1.0 Develop
Vision and
Strategy
(10002)
To ensure the organization performs the
duties assigned by the Lieutenant
Governor in Council. Resources
assigned to lead the organization provide
capabilities for proper conduct of the
business of the department. This
includes considering broad and long
term factors when planning and making
decisions, identifying patterns or
connections and addressing key
underlying issues; understanding the
linkages and interactions between
elements of the whole system;
understanding how the ministry and
inter-ministry issues, programs and
policies impact public interests and
concerns, and aligning program policy
with the strategic direction of
government.
Deputy MinisterADM’s, Executive
Directors
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Process Architecture – Result and Value
Provides capability for resources to draw relationships amongst the process categories and ensure managing as a whole
Linkages built: Amongst management, core and enabling processes
between processes to projects, and other organizational changes
Amongst sub-processes to higher-level processes
Between processes at the tactical level and management level
Provides: Single version of the truth via a one page view of an organization
capability for organizational accountability
Capability for integrated performance management system (process, organization and individual)
Represented in models and descriptive statements of what is meant by each level 0-2 process
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Process Architecture Governance and
Considerations Process management is aligned to performance
management systems
Process owners are accountable for the
performance/health of the process
Processes need to be measured from the customer’s
perspective
Changes to a process must be approved by the
process owner
Processes span many functional areas and
sometimes divisions, the process owner is
responsible for engaging all stakeholders in the
change to ensure the expected outcomes are
achieved
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Process Architecture Governance and
Considerations continued Process is the formula for delivering a service
Processes are an organizational asset that people are hired to perform on behalf of the customers.
Customer experience is a result of how well the people in the organization are able to support the:
customer with the processes,
tools, and
resources they have available to them;
Defects or absence of any of the above result in variation and unexpected results
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Process Architecture Governance and
Considerations continued Formal recognition of matrix
accountability/responsibility;
if managers have responsibility for a functional area, they are responsible for highlighting/escalating problems with the process to the process owner to fix, they should not fix without process owner approval to ensure that they are not causing worse breakage elsewhere
It is not always about have the most sophisticated systems in place, sometimes the most effective process is simple in nature and void of technology
Process Architecture is part of the Business Process Management Program of the organization; supporting standardized terminology, tools, models
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What value does it provide?
The value that it provides to ECON (or any organization) is
that it provides a clear determination of who is
responsible and accountable for the processes.
This assists an organization greatly when looking at
making changes to help understand the impact. It also
provides a clear road map for the organization to
understand the linkages between the processes which
provides a greater understanding by employees of the
work that we do.
- Denise Haas, Chief Financial Officer, Revenue and
Corporate Services, Ministry of the Economy
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Business Architecture
An Evolving Discipline
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Alignment
Chapter 6: Strategy Analysis
6.6: No part of the current state should be assessed in complete isolation from the rest. Business analysts must understand how all of these elements of the current state fit together and support one another in order to recommend changes that will be effective. The existing business architecture typically meets an assortment of business and stakeholder needs. If those needs are not recognized or do not continue to be met by a proposed transition or future state, changes are likely to result in a loss of value.
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Alignment
Chapter 11:
11.4 The Business Architecture PerspectiveThe Business Architecture Perspective highlights the unique characteristics of business analysis when practiced in the context of business architecture.
Business architecture models the enterprise in order to show how strategic concerns of key stakeholders are met and to support ongoing business transformation efforts.
Business architecture provides architectural descriptions and views, referred to as blueprints, to provide a common understanding of the organization for the purpose of aligning strategic objectives with tactical demands. The discipline of business architecture applies analytical thinking and architectural principles to the enterprise level. The solutions may include changes in the business model, operating model, organizational structure, or drive other initiatives.
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Alignment
Chapter 11:
11.4 The Business Architecture Perspective
The Business Architecture Perspective highlights the unique characteristics of business analysis when practiced in the context of business architecture.
Business architecture models the enterprise in order to show how strategic concerns of key stakeholders are met and to support ongoing business transformation efforts.
Business architecture provides architectural descriptions and views, referred to as blueprints, to provide a common understanding of the organization for the purpose of aligning strategic objectives with tactical demands. The discipline of business architecture applies analytical thinking and architectural principles to the enterprise level. The solutions may include changes in the business model, operating model, organizational structure, or drive other initiatives.
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Alignment
Chapter 11:
11.4 The Business Architecture Perspective
The Business Architecture Perspective highlights the unique characteristics of business analysis when practiced in the context of business architecture.
Business architecture models the enterprise in order to show how strategic concerns of key stakeholders are met and to support ongoing business transformation efforts.
Business architecture provides architectural descriptions and views, referred to as blueprints, to provide a common understanding of the organization for the purpose of aligning strategic objectives with tactical demands. The discipline of business architecture applies analytical thinking and architectural principles to the enterprise level. The solutions may include changes in the business model, operating model, organizational structure, or drive other initiatives.
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Alignment
Chapter 11:
11.4 The Business Architecture Perspective
The Business Architecture Perspective highlights the unique characteristics of business analysis when practiced in the context of business architecture.
Business architecture models the enterprise in order to show how strategic concerns of key stakeholders are met and to support ongoing business transformation efforts.
Business architecture provides architectural descriptions and views, referred to as blueprints, to provide a common understanding of the organization for the purpose of aligning strategic objectives with tactical demands. The discipline of business architecture applies analytical thinking and architectural principles to the enterprise level. The solutions may include changes in the business model, operating model, organizational structure, or drive other initiatives.
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The Guild opened for membership in 2011
The Business Architecture Guild is a community of business architects who have come together to build and expand their profession. The Guild is an international, diverse community of business architecture practitioners, beneficiaries and interested parties. We are a collaborative collective where individuals can learn with and from their peers, explore and develop new ideas, and further the practice and discipline of business architecture.
The Business Architecture Guild is an aggregation of the original Business Architecture Guild and other entities in the profession of business architecture, including the Business Architects Association® and the Business Architects Association Institute (BAA Institute) ®.
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BPTrends
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Business: An organization or group of organizations with the purpose of providing goods, information or services.
Business Process Model: The fundamental abstract structure and organization of a Business Process or set of Business Processes as described by their elements, their relationships to one another and to the environment in which they operate. NOTE: The individual components of the business model do not constitute the Business Process Model.
Capability: the ability of an organization or a Business Process to achieve a desired outcome.
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Business: An organization or group of organizations with the purpose of providing goods, information or services.
Business Process Model: The fundamental abstract structure and organization of a Business Process or set of Business Processes as described by their elements, their relationships to one another and to the environment in which they operate. NOTE: The individual components of the business model do not constitute the Business Process Model.
Capability: the ability of an organization or a Business Process to achieve a desired outcome.
The Business Process Architecture Model I reviewed
today is based on BPTrends, it is the Level 0-2 abstract
structure of the organization in focus.
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Capabilities vs Process - the dilemma
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Capabilities vs Process - the dilemma
The business capability perspective is in its early days and there is still a good deal of
controversy between business process and capability camps. There are many ways to do
business architecture, and you will have to make your own choice of course. Many
organizations are still struggling to determine what to do. There is a lot of angst between
business architects, enterprise architects, technology architects and business process
professionals and, of course, operational managers regarding what is needed and how to
tackle the capability and process perspectives.
– Roger Burlton, BPTrends
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Wrap Up and What I Know for Sure….
Business Architecture/Business Process Architecture…..it’s an evolving discipline
Don’t get hung up on the terminology, BUT be consistent and know what context you are working with (processes begin with verbs/actions; capabilities are nouns (descriptors)
Understand the context of the organization you are architecting and your why Do it because it helps, not just because
Elaborate to the level you need to
Once you begin to think in the way of Architecture, understanding the impact of change is a whole lot easier
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Reference Materials
Business Process Change: A Guide for Business Managers and BPM and Six Sigma Professionals, Second Edition by Paul Harmon
Business Process Management: Profiting from Process by Roger T. Burlton
APQC Framework: http://www.apqc.org/process-classification-framework
Business Analysis Body of Knowledge 3.0
http://www.bptrends.com
https://www.youtube.com/watch?v=sHhTxeLMyPI
Business Architecture Guild: http://www.businessarchitectureguild.org/?page=aboutus
Business Architecture Guild Member Resource: https://vimeo.com/157787273
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Contact Information:
(306) 536-3056
Solvera Solutions www.solvera.ca
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