Consultants Corner Dec 2013-Jan 2014

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Process Documentation

5WH approach to Business Process Reengineering

Business Process Mapping

Essentials of a good Business Process Document

2

Consultants’ Corner

In this Issue

3 5

Process Documentation An introduction to Process Documentation and types of process charts

5WH approach to Business Process Reengineering A brief insight into the techniques of Business Process Re-engineering

7 11

Business Process Mapping A bird‟s eye view on the stages of Process Mapping and the layers of process documentation

Essentials of a good Business Process Document Highlights the contents of a process document and the benefits of business process documentation

13 14

Quiz Corner What’s up at NCRCL? All events and birthdays at NCRCL

A special issue of Consultants’ Corner will be released in January 2014 showcasing the major events and happenings at NCRCL during the year 2013.

Readers’ Corner If you have any comment/suggestion for the editors, please write to us at cc@ncrcl.com. Your views and comments on articles featured here are also welcome!

From the Editors A key focus area that any business organisation should focus on but rarely attends to is Business Process documentation. Business operations are getting increasingly complex these days and it would only get more complicated in the days ahead.

Fixing responsibility and accountability and establishing control seem to be a mirage in the organisation set up that many of the businesses have. Precisely here is where Business Process Mapping comes to the rescue.

Process mapping helps organisations understand their business processes better and in turn improve their efficiency and effectiveness in delivering products/ services. Process mapping presents the various activities in each department/division in a logical flow ensuring standardisation of processes and also fixes responsibility for the activities thus enabling accountability. Business Process Mapping is used by both private as well as government sector to document their processes and identify any gaps in the processes.

Process mapping also provides organizations a solid base for taking up process automation thus ensuring better returns on their technology investments.

Consultants are generally called upon to help organizations in the process mapping exercise. The consultants are expected to bring about their process mapping expertise on the one hand and their knowledge of best practices on the other. Engaging a consultant also helps the organization take an unbiased look at its internal systems.

This issue of Consultants’ Corner covers this well established area of consultancy. The various components of Business Process Mapping and Documentation are dealt with in detail based on the wealth of experience and research that NCRCL has acquired in this field. In fact, NCRCL has a trademark product called ProMap which it uses for all its Process Mapping assignments.

The editorial team is proud and happy to reveal that the readership base of Consultants’ Corner has beaten the last month’s record and set a new record.

Furthermore our magazine readership is slowly but surely spreading across the globe too. We thank our readers for this overwhelming support and encouragement.

We would like the readers to send us more views and suggestions on any aspect of Consultants’ Corner which has a direct impact on the quality of the magazine. The Editors will respond to the suggestions and views of the readers and the suggestions will be published in subsequent issues of CC.

3

Consultants’ Corner

Process Documentation “You don’t learn to Process Map, you process map to learn” – Dr. Myron Tribus (Ex-Director of Center for Advanced Engineering Study, MIT)

I

n simple words, a process map is a pictorial representation of a series of activities that make up a process. A process is a series of steps with a specific objective. For instance, release of Purchase Order is a process involving series of actions with specific responsibilities assigned to individuals.

The history of process mapping dates back to 1921 when Frank Gilbreth presented his article on “Process Charts: First Steps in Finding the One Best Way.” Today, business process mapping is widely used by businesses to understand both intraorganization and inter-organization functions.

 Circles, ovals or rounded rectangles – Start/ End  Arrows – Flow of control  Rectangles- Generic processing steps  Diamond rhombus – Decision  Parallelogram – Input/output symbols 2. Opportunity Flow Charts: An opportunity flowchart, a variation of the basic linear type, differentiates process activities that add value from those that add cost only.

TYPES OF PROCESS MAPS In the earlier times, process maps were simple flowcharts. Over the years, the structure of process maps has been refined to cover complex processes as well. The three basic types of process maps are: 1. Flow Charts: A flowchart is a diagrammatic representation of a process, with pre-defined types of boxes, showing the steps their order by connecting them with arrows. Flowcharts are simple, easy to understand and are most commonly used in computer related applications.

Some widely used symbols in flow-charting are as follows:





Value-added steps (VA) are essential for producing the required product or service. In other words, the output cannot be produced without them.

Cost-added only steps are not essential for producing the required product or service.

They may be added to a process in anticipation of something that might go wrong, or because of something that has gone wrong.

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Consultants’ Corner

3. Swim-lane Mapping: In a swim-lane map, the activities of a process are grouped either horizontally or vertically in lanes. A swimlane map shows the responsi bi lit i es of every person/ department involved in the process. Swimlanes are commonly used as crossfunctional flowcharts to depict the activities performed by different functional units of a business.

PROCESS MAPPING-A MANDATORY DOCUMENT IN INDIAN SCENARIO-POINTS TO PONDER

BENEFITS OF PROCESS MAPPING  Process maps are pictorial, thereby enabling easy understanding of existing processes of an organization. The persons handling the process get better clarity on the process and also get to understand the processes of other departments  Process maps help in process re-engineering by helping to identify the gaps and loopholes in the AS IS Process.  With the help of AS IS process maps, process audit could be carried to find the extent of compliance with the AS IS process.  Training to new employees on the activities of organization can be better explained through process maps.  Process maps provide a basis for Six Sigma and Benchmark analysis CHALLENGES IN PROCESS MAPPING Process maps are effective tools of organizational improvement. Nevertheless, the preparation of process maps has its own challenges. To list a few,  Thorough understanding the processes in a short span of time and preparation of exhaustive process documentation  Knowledge and usage of modern IT tools in preparation of process maps  Availability of experts to prepare process documentation  Management‟s confidence on the need and usage of process documentation.

Our greatest glory is not in never falling, but in rising every time we fall.

- Confucius

At present, process maps are prepared for ISO certifications and for process re-engineering assignments only. Hence the concept of process mapping is still in a nascent stage in India. However, with the initiative of the Government, process documentation could be made as a mandatory document to be maintained by large organizations. For this purpose, limits based on turnover/ listed companies could be laid down for organizations for which process documentation is compulsory.

SCOPE FOR MANAGEMENT CONSULTANTS Management consultants, with their analytical, presentation and technical skills have a great scope in helping organizations in the preparation of process maps and process re-engineering assignments. Consultants have specialized skills that would enable an organization to identify what it requires, why it requires, where to correct and how to correct. For this purpose, process documentation is increasingly used as a tool by Management Consultants.

We, as Management Consultants, can sensitize our clients the need and importance of process mapping.

We can introduce best practices in this regard so as to minimize the cost of operations of the client and maximizing his value of business, for increased efficiency and profitability.

Ms. Bhavana R can be reached at bhavana@ncrcl.com

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Consultants’ Corner

5WH approach to

Business Process Re-engineering

B

usiness Process Reengineering involves changes in structures and processes within the business environment.BPR involves identifying the processes, analysing the existing processes, designing the To Be process and its implementation. Understanding and mapping the existing process of the business is an important step before designing the To Be process. Improvisation of a process cannot happen without an in depth understanding of the existing process.

5WH approach stands for the following:

Generally, the business process is explained by the client to a consultant. During such discussion a bird‟s eye view is provided to the consultant. Then the consultant needs to dig deep to understand the intricacies involved in performing each activity and its contribution to the business process. This is where the 5WH approach can be used as a tool.

Why use 5WH approach?

1W – „What is the activity?‟ 2W – „Who is performing the activity?‟ 3W – „Where is the activity performed?‟ 4W – „When is the activity performed?‟ 5W – „Why is the activity performed?‟ H – „How is the activity performed?‟

The 5WH approach helps us to understand the vital elements of an activity. The information so collected can then be applied in various areas. The table below shows the information obtained and where such information can be put to use while preparing a business process document.

What is the 5WH approach?

It is basically a simple set of 6 questions that is queried to understand an activity. The 5WH approach is designed in a way to cover all the functions within an activity.

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Each difficult moment has the potential to open my eyes and open my heart.

Myla Kabat-Zinn

6

Consultants’ Corner 5WH

Description

Information obtained

Use of information obtained

What is the activity?

A general description of the activity can be understood by this query

Generally, the answer to this question is the activity description in the process map

Who is performing the activity?

The person responsible for performing the function

Accountability is provided for each activity and can be used in reporting Layer

Where is the performed?

activity

Activity can happen at different locations in the enterprise

Location in which the activity is performed is used in the process description

When is the performed?

activity

Timing of the activity whether performed on an hourly, weekly or monthly basis

In case the activity is to prepare a report, its periodicity is recorded in the reporting layer. Additionally, timing of the activity can be included in its description

Why is the performed?

activity

Reason behind performing this function

An understanding of the reason why the activity is performed is obtained providing an insight of its prominence in the larger picture. It is useful for decision making while re-engineering the process as to whether the activity is crucial to the process

How is the performed?

activity

Method(s) used to perform the activity

The same activity can be performed using different methods.

During re-engineering, the method of performing the activity can be modified to produce better results

1W 2W 3W 4W 5W H

The above queries of 5WH approach are illustrative to an organization involved in business process outsourcing. The queries that can be raised are flexible, that is, the questions can be altered in such a manner to suit different industries.

Each question addresses a certain function of the activity. The benefits of the approach lies in the way the information collected from the questions can be used as illustrated in table. The questions relating „Why‟ and „How‟ is crucial in providing a better understanding on the importance of the activity and helps in providing data to identify a better method of performing this activity. The questions on „What‟, „Who‟,‟ where‟ and „when‟ provide information on the way the activity is currently performed.

While the first four questions help us to comprehend the existing process, the last two questions aim to answer the question on whether this activity can be tweaked leading to the design of the To Be process.

These queries also help in preparing a process documentation containing all the vital information.

The 5WH approach is an extremely useful tool to understand the existing process since it encompasses all the functions of an activity. If these queries are raised for each activity within a process, a wholesome understanding of the process can be achieved. This will lead to a better judgement in the design and viability of the To Be process.

Mr. Vinod Murali can be reached at vinod.m@ncrcl.com

If you want others to be happy, practice compassion. If you want to be happy, practice compassion.

- Dalai Lama

7

Consultants’ Corner

Business Process Mapping

B

usiness Process Mapping (BPM) is one of the core competencies of NCRCL. BPM is the presentation of activities by linking one to one to make a logical flow, show the reader can understand the various functions of the business entity. The objective of the BPM is to help the organisation by presenting the process logically, highlighting process gaps, proving solutions and reengineer wherever required. The BPM in any organisation passes through a series of stages to achieve the ultimate objective. NCRCL has developed a methodology after a decades of research and experiments with different industries and different sectors.

Wisdom tells me I am nothing. Love tells me I am everything. And between the two my life flows.

- Nisargadatta Maharaj

The picture above shows the various stages and activities involved in the Business Process Mapping stages.

The stages are: 1.

2.

3.

4.

5.

6.

Process Study Documentation Validation AS IS Documentation Issues Identification TO BE Documentation

Stage 1: Process Study In this stage the Complete Study of the organization takes place. The processes are either studied by keeping the business process in view or the departmental functions. During the study, many an Interactive Discussions takes place between the experts and personnel of the organization.

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8

Consultants’ Corner Stage 2: Documentation During this stage the Workflow Mapping of the various functions takes place. During the workflow mapping, the Integration of the processes is done by linking the inter-departmental and intra-departmental activities.

and weaknesses which have been addressed in the designing of „TO BE‟ processes. Wherever NCRCL felt the need for re-aligning and reengineering the

Stage 3: Validation The most important aspect in the study is to justify the expert‟s understanding of the organization functions and activities. These are done with the help of Meetings and Discussions with the personnel.

Stage 4: AS IS Documentation After the clear understanding of the business processes of the organizations, the AS IS documentations is are done. The output shows the exact picture how the organization is functioning. The AS IS documentation is finalized and handed over to the organizations.

Stage 5: Issues Identification This is most crucial and intelligent stage where a paradigm shift happens for the organization. The Gap Analysis is done by identifying the process gaps by the experts. The Consultants‟ BPR Experience helps to plug the gaps and reengineer the processes wherever required. In this stage lots and lots of Brainstorming takes place between various experts to give the right solution to the organization.

Stage 6: TO BE Documentation After brainstorming with various experts and understanding the gaps in the existing processes the time comes for the presentation of the TO BE Process documentation is prepared. The TO BE process documentation shows the appropriate processes flow by plugging the gaps, adopting new activities as required, discarding unnecessary activities etc. This documents is presented in four layers viz.,.

The four layers are i. ii. iii. iv.

Process layer

This presentation of four layers in process Document Layer documentation is designed

by NCRCL and is part of Authority layer and “ProMap” Reporting layer

Process Layer: This involves a complete mapping of the intra-departmental and inter-departmental processes in the organization. This gives clarity of the processes existing in the organization and also throws light on the various process gaps

processes is felt, the same shall be have been fine tuned or revised. Also the department wise sub-processes shall be have been identified by alpha numeric codes, in order to make easy sub-process identification and action for reengineering.

Every process layer begins with a process profile.

This profile summarizes the process owner, list of documents, registers & and reports involved, and the start activity and & the end activity. This gives the big picture overview of the complete process and sub-processes.

There are various methods of presentations of the process charts, some of them are: 

Simple vertical flow chart



Swimlane flow chart (Horizontal or Vertical)

NCRCL® has been practicing Swimlane flow chart for the presentations of process maps. In the Swimlane method of presentation of flow charts, the pool and lanes are used to distinguish the departmental or authority functions. If in any department, both the department and authorities are shown, the department is represented by the pool and all authorities are represented by lanes.

Contd on next page

Often, when we feel empty it is because we don't give enough. Not because we don't have enough.

- Daily Good Editors

9

Consultants’ Corner The following icons are used in the Process Layer: Symbol

Meaning and How to Read Process Flow This symbol indicates the flow from one process/sub-process/activity to another. This is helpful in gaining an easy understanding of the process flow, i.e. the logical sequence in which things happen in a department. An arrow coming from one symbol and ending at another symbol represents that control passes to the symbol the arrow points to.

Process/Activity This symbol depicts an activity in the process flow. Each of the activities has been coded with an Alpha-Numeric Code with the following Convention AA-00-0. The coding methodology of the processes are as under: Dept Name

Process Code

Activity Code

AA

00

00

Process/Sub-Process A Process/Sub-Process is depicted with this symbol. This means that this process/sub-process has been covered separately and has a unique process diagram explaining the same. This process/ sub -processes have the same alphanumeric code format as explained.

Branching When a process leads to one or more processes/activities, the branching symbol has been used.

Decision Box Decisions are represented by a diamond and typically contain a Yes/No question or Ok/Not ok test.

This symbol is unique in that it has two arrows coming out of it, one corresponding to Yes or Ok, and one corresponding to No or Not Ok. Connector Connectors are used either on page or off page, if the process map is too big to fit in one page or difficulties in establishing the process flow.

Automated In the reengineering environment, some of the activities are automated which are highlighted with the help of this icon.

Authorization Authorization is for the documents and reports. In the process flow, where the documents are authorized by a any authority is indicated by this icon.

Document Wherever any of the activities in the process flow accompany any document, it is indicated with this icon.

Register Wherever any of the activities in the process flow accompany any register, it is indicated with this icon.

Risk This icon shows the inherent risks in the activities. This helps the user to take extra caution while performing the activities.

Leading to

Leading To These are usually at the end of a process/sub-process indicating the logical next step or connection to the next process/sub process in the process flow.

Start/End These usually contain the word "Start" or "End", or another phrase signalling the start or end of a process.

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Consultants’ Corner

A Process Layer is given below as example

The other layers of documentation have been discussed in the article “Business Process Document”

Mr. U S Mohanty can be reached at mohanty@ncrcl.com

Opinion Poll Result Best article in the Oct-Nov 2013 issue of Consultants’ Corner The Editorial Team thanks its readers for taking part in this poll. We request our readers to actively participate in this Opinion Poll since the annual best article for CC would be selected based on your votes.

Total no. of votes polled: 11

There are two ways to live: you can live as if nothing is a miracle, or you can live as if everything is a miracle.

- Albert Einstein

11

Consultants’ Corner

Essentials of a good Business Process Document

A

Business Process Document is a well structured document for all the business processes within an organization. A business process document defines the role and responsibility of all the stakeholders in the organisation and acts as a guide to them. The processes referred in the document are standardized and all the stakeholders of that process understand and agree on how a process is supposed to run. It also serves as the baseline for training documents to prepare new employees/ stakeholders for that process.

Most organizations have come to realize that if they want to expand their business/to realise their potential, they must operate in a systematic way or in other words, they must have a set of standard business processes.

Any organization generally is built on four pillars viz., Policy, People, Process and Technology i.e., 3PT. Policy provides all the stakeholders with clear roles and responsibilities, having the right People, motivated and performing is naturally a key requirement to performance and Process defines the work flow among people in the organisation.

Technology provides people with the right tools to do their jobs well are also vitally important to ensure success. The Business Process document is one which holds it all together. It acts as glue between the 3PT constituents.

Contents of a Business Process document 1. Purpose 2. Organization structure 3. Process chart 4. Interfaces with Other Processes

7. Description of Process maps 8. Document and Authority profile 9. Report Profile 10. Policy and Guidelines 11. Document & Report Formats Purpose: The purpose of business process document must be clear and mentioned in the document. The reason for development of process document must be clear. There are few purposes that the document is developed viz., to give the reader an overview of the business processes in the organization and the inter-departmental information flows; to identify activities and processes for reengineering and/or process automation; or to provide a very good base for monitoring process efficiency and establishing a strong internal control system.

Organization Structure: A structure of the organization should be a part of business process document. The Organizational structure determines how the roles, power and responsibilities are assigned and coordinated between different departments or divisions. It also explains how the information flows between the different levels of authorities.

Process Chart: A map or diagram of the process should be developed to show the whole process in a single place. Dividing a process into sub-processes and creating a map for each sub-processes is often useful to the stakeholders.

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5. Ownership of activities

The idea that some lives matter less is the root

6. Specify supporting Technology/Business automation tool for activities

of all that's wrong with the world.

- Paul Farmer

12

Consultants’ Corner

The process code, description, Process Owner, person who validated the process, Version number, date of last updation and the legend should be presented on top of the process chart.

Each process and activities within the process contain a code for easy identification.

Process Description: Write a description of the process that references the process map and provides information that applies to the process as a whole. The activity-wise description is to be tabulated under each Process Chart. This is to be cross referenced to the Chart with the activity code.

Activity Code

Activity

Descriptions

Reports Profile: Under each department, the key Management Information System reports are to be given in the reports profile. The reports are based on the key decision making needs of the department head. For each report, a report code is to be assigned. The report name, brief description, preparer, primary user and the periodicity for each report are indicated in the reports profile.

Report Code

Document and Authority Profile: The key documents that are associated with the process should also be explained. The document profile contains details of all documents that are generated/ used in that department. These documents could be electronic or manual. A document code is to be given for each document. Details like who prepares the document, who approves, to whom it is sent, the format of the document (email/physical etc.) are mentioned against each document in the document profile.

Document Code

Document Prepared/ ApType Name Generated proved By By <<email/ physical>>

Sent To

Copies

Report Name

Description

Prepared By

Primary User

Periodicity

<<we ekly/ month ly>>

Policy and Guidelines: A well-structured documentation system should be derived from corresponding business policy. Subordinate to the business process document are documents that address procedures used to realize and implement the process, as well as possible work instructions to provide additional required detail.

The policy, guideline, process documentation and work instructions should be organized together.

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Our own life is the instrument with which we experiment with the truth.

- Thich Nhat Hanh

13

Consultants’ Corner Document and Report Formats: The documents and reports that are listed in Document and Authority profile and Report profile must have standard formats.

Developers of documents should be aware of the needs of the stakeholders while designing the formats

Benefits of a Business Process Document For Better understanding: A common need among organizations is the ability to describe their processes in a way that their stakeholders will quickly and easily understand. The document that accurately explains how a process works is a critical need for all organizations.

To standardize business activities: It is observed in most of cases that all the stakeholders do not work in a structure way. To ensure efficiency and effectiveness in the business activities standardisation is crucial. A well designed business process document ensures this.

Help in SWOT Analysis:

Reduction in Turnaround time and money: An organization with defined processes can find opportunities to improve efficiency without sacrificing quality and consistency. They can identify duplication of effort and spot areas that are being overlooked, in other words they can identify gaps in the processes, and fix them in lesser time.

Internal Control: An organization with defined process can ensure effective internal control over its activities. At the time of audit, the auditor can refer the Business Process document to understand the defined processes and identify the gaps between the actual and defined process.

Use as a guide for new employees: Processes provide a blueprint for new employees, and enable cross-training to minimize business interruption in case of illness/employee turnover. It also enables to understand what roles to hire for and identify those skill gaps if any.

Organizations with defined processes are better able to evaluate their strengths and weaknesses and identify opportunities for improvement. They can improve their processes which help them to increase stakeholder‟s satisfaction and loyalty. They are better able to cope with the unknown and react swiftly to changes in the competitive landscape. In short, the business process document help them to identify when they are doing things right, and can more quickly course correct when they are not.

Mr. Gopal Agarwal can be reached at gopal@ncrcl.com

1. Agastya is one of the projects that has won the Google impact challenge award of US $ 500,000. What is it about?

2. Which Indian brand is the world‟s fastest growing whisky (scotch) brand?

3. RBI has recently said that it is possible for foreign banks to be treated nearly at par with national banks, if they become what?

4. How is Tirumala Tirupati Devsthanams promoting walking among the devotees visiting the Balaji temple?

5. After the Du Plessis ball tampering controversy what essential requirement in trousers has been asked to be removed from cricketer‟s trousers by ICC by 2015?

Send in your answers to the editor at cc@ncrcl.com Participants with the correct entry will be awarded with a Recognition Certificate by NCRCL. Last issue answers. 1. Prem Watsa; 2. Rajini (Rajinikant); 3. One; 4. Anil Ambani;

Right answers for the previous issue quiz was given by

5. Voluntary Compliance Encouragement Scheme

Bhavana R & Madangi A !!! Congratulations !!!

14

Consultants’ Corner

What’s up at NCRCL?

Dr. RS Murali, Ashok Rao, Kishore interact with the SERP officials during their visit to Hyderabad & Bibinagar on 22nd October 2013 as part of their Project with SERP

Ayudha Pooja being celebrated on 11th October at NCRCL Bangalore and 12th October at NCRCL Chennai NCRCL Bangalore staff enjoying their one day trip to Talakadu & Somanathapura, on 2nd Oct 2013

Study Circle Presentation at NCRCL 1. Dr. R.S. Murali conducted a session on “Consulting Process - Part I” on 05th Oct 2013.

2. Dr. R.S. Murali conducted a session on “Consulting Process - Part II” on 11th Oct 2013.

3. Dr. R.S. Murali conducted a session on “Preparing ourselves for Consultancy’” on 25th Oct 2013.

Neeta Raval joined NCRCL® Chennai as Admin Officer in October 2013.

Birthday wishes

We extend a very warm welcome to YOU!!

Madangi Anand - 7th Dec

Suresh C S - 19th Dec

Happy Married Life!!!

Babu Rajendra Prasad from NCRCL, Chennai exchanged marital vows with Mahalakshmi R on 15th Nov 2013 Team NCRCL wishes the couple a blissful married life forever.

Deepak S - 30th Dec

Ashok Rao - 11th Jan

Our Mission is to apply our professional capabilities with a holistic approach for the happiness of clients, through values and social commitment.

Editorial Board

Contact

Mr. C S Suresh, Executive Director Mr. Ashok Rao, Executive Director

NCR Consultants Limited

Editors

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