BPPA

Process Management Handbook

BusinessProcessandProceduresAnalysisUnit CurrencyDepartment June2009

All revisions or comments related to this manual should be forwarded to the BPPA Unit. A Request Form and Feedback Form are located on our website @ XXX>XXX>BusinessProcessandProceduresAnalysis

Table of Contents
Page

About this Manual

Updates Table ............................................................................................................................1 Information about this Manual ..................................................................................................3

Business Excellence and Process Management

Overview ...................................................................................................................................5

Process Management 101

Process Q & A What is a process? ......................................................................................................................7 What is a business process? .......................................................................................................7 Are there different kinds of processes?......................................................................................8 How do I know Im executing a process? .................................................................................9 What is the graphic representation of a process? ......................................................................9 Do I need a graphic representation of a process to execute it? ................................................11 What is the difference between process and procedures? .......................................................11 Process Management Q & A What is process management? ................................................................................................13 What is the Business Process Management (BPM) Framework? ...........................................13 How does BPM Framework work with NQI PEP criteria? .....................................................14 What is P.O.S.I.? ......................................................................................................................14 How can we tell a process is at risk? .......................................................................................15 What is the goal of process management? ...............................................................................16 What are the benefits for process management?......................................................................16 Who is a Process Owner? ........................................................................................................16 Who is a Process Analyst? .......................................................................................................17 Who is a Subject Matter Expert (SME)? .................................................................................17 What is the role of the Process Driver Team ...........................................................................17 What is the difference between process management and process improvement? .................18 Turtle Diagram What is a Turtle? .....................................................................................................................19 The Elements of a Turtle..........................................................................................................19 How to Create the Turtle..........................................................................................................21 Hexagon Model Hexagon Model .......................................................................................................................23 What is the Currency Hexagon? .............................................................................................23 What are Steams of Processes? ................................................................................................24 What the Currency Hexagon is Not .........................................................................................24 What is the Hexagon is Used For? ...........................................................................................24

Page

Process Ownership
Role and Responsibilities of the Process Owner Who is a Process Owner? ........................................................................................................25 Responsibilities of the Process Owner? ...................................................................................25 Role of the Process Owner .......................................................................................................25 Process Monitoring ............................................................................................................26 Risk Assessment ................................................................................................................26 Improvement Initiatives .....................................................................................................28 Initial Role in the Development and Implementation of Process Management ................28 Process Ownership Tools Turtle Diagram .........................................................................................................................29 Flowchart .................................................................................................................................29 Risk Analysis ...........................................................................................................................29 Hexagon Model ........................................................................................................................29 Process Owner Resources ........................................................................................................30 Process Owners Who Can Be a Process Owner? ...............................................................................................31 Benefits of Having Process Owners ........................................................................................31

BPIR Business Process Improvement and Re-design

Overview What is Process Improvement? ................................................................................................33 What is Process Re-design .......................................................................................................33 What Triggers the Lauch of a BPIR Project? ..........................................................................33 BPIR Process Improvement Three Steps Method ................................................................................................................35 Content of Each Phase .............................................................................................................36 Who is Involved? .....................................................................................................................39 10 Streamlining Principles .......................................................................................................40

About this Manual

Updates Table Updates

Process Management Handbook

DATE LAST UPDATED TAB(S) PROCEDURE(S) PAGE(S)

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About this Manual

Information about this Manual

Purpose and Audience This document is a comprehensive reference document about Process Management for the Currency Department. This handbook is to ensure that all stakeholders share the same level of knowledge and understanding of what Process Management entails. This Reference Manual is designed as a quick reference for experienced users. It provides information required to perform job duties not necessarily documented in a procedures manual due to the volume or generality of the information. The manual is formatted in PDF to enable users to search the manual online and then view or print just the relevant sections. Manual Structure The manual contains three sections: Process Management 101 - Q & A regarding process and process management Process Ownership - Role and responsibilities of the Process Owner Business Process Improvement Redesign

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Business Excellence and Process Management

Overview

Overview Currency's goal of achieving organizational excellence is met through the execution of the National Quality Institute's Business Excellence Framework. The Framework is used to manage the department. Process Management is one of the seven (7) drivers of Currencys business excellence endeavor: Leadership, People, Planning & Risk Management, Clients & Stakeholders, Suppliers & Partners, Knowledge Sharing and Process Management. The purpose of the Process Management Driver is:

to develop a process management toolbox to facilitate the implementation of a framework for prevention based process management and to support a factual approach to decision making.

Why do we need process management? Process management enables continuous quality improvement resulting in reduced waste, cycle time, errors, duplication; while increasing consistency, reliability, simplification and standardization.

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Process Management 101

Process Q & A

Process Q & A
What is a process?

There are many definitions of Process. We prefer the following ones as they provide a solid basis for Process Management. A Process is a coordinated and logically sequenced set of work activities and associated resources that produce something of value to a client. * (Omar A .El Sawy Redesigning Enterprise Processes for e-Business) A series of definable, repeatable, and measurable steps which transform some input from a supplier into a useful result, or output, for an internal or external client.(NQI)
Characteristics shared by every process:

A process always generates value to a client The execution of a process starts with a trigger and uses resources to be executed Processes are invisible, intangible: we cannot see-touch-feel them except through their measurable outputs and the consumption or use of resources Each and every process has an owner. (For more information about Process Ownership see Page 25 of this manual. Processes are represented by a model or a graphic representation (such as flowchart)

What is a business process?

Business processes are the engine to execute our business strategy and deliver the value defined by our business goals.

PROCESSES define MTP ENTENTE BUSINESS PLAN develop refine PURPOSE RESULTS & PERFORMANCE enact

RESOURCES Organization & Systems

allocate INSTANCES

measure

envision CURRENCY

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Process Q & A

Business processes are directly related to business goals. Different business goals will require a different set of business processes. This relationship is described with the Currency Hexagon. Execution of business processes uses resources (people and systems). That relationship is described in the Processes, Organization and Systems compose a balanced and aligned Infrastructure (POSI). For more information about POSI see Page 14 of this manual. Only once processes have been executed can we: a) assert if business goals have been met and, b) analyze the performance of the processes.
Are there different kinds of processes?

There are four types of processes, based on the type of outputs:

Business Processes
Deliver a value to

Work Processes
Represented by

Management Processes
Do not directly deliver

Supporting Processes
Do not directly deliver

business clients.
Occur in sequence of

streams of processes.
For example: Bank

workflow diagrams and very often known through the associated work procedures.
Mainly deal with

business value, but are instrumental in managing the organization.

Create the proper work

a business value, but are instrumental in creating inputs to business and work processes.
The processes

Notes Procurement Process.

products or materials which can be physically handled, moved, stored.

For Currency, most of

environment for the business processes to deliver value.

Process Management

is one of them, as well the work processes as project managesupport the activities of ment or planning the AOCs, RDCs and process. OSC (those parts of Used as resources to the organization that execute some are ISO Certified). business processes. For example: Note For example, Contract Processing Process Management Process owned by the AOCs.

outputs do not directly contributing to the business purpose of the organization.

For Currency, they are

mainly research and analysis processes:

Economic Research Analysis Scientific Research Management of Collection at the Museum

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Process Q & A How do I know Im executing a process?

To determine whether a process is being executed, Process Owners use the following check list. The activity or task: Produces something of value. Outputs or what is produced by the activity can be clearly defined. Has a client. Who or what part of the organization is going to use the process can be identified. Has coordinated and logically sequenced set of work activities. A set of work activities or tasks, logically sequenced and related to time can be identified. The starting point is known as well as subsequent steps when a task is complete. Has associated resources. Resources used to execute the task: position, role in the organization: information systems, automated machines, policies to comply to, other management processes and procedures, can be identified. Is repeatable. Activities and tasks can be executed the same way with the same result. Is measurable. Outputs and how well the task has been performed can be measured.
What is the graphic representation of a process?

There are different possible diagrams to illustrate or graphically represent a process. The choice between the different techniques can be made depending on:

the type of process the reason for illustrating the process (for example, supporting procedures, improvement initiative or further automation) the tools available (for example, Visio or a more elaborated Business Process Management Notation (BPMN) software)

At the Currency Department, a Process Analyst in Business Process and Procedures Analysis (BPPA) Unit is there to recommend the best option, to assist you in drawing diagrams, to provide training on software and tools, and even draw the diagrams for you.
Flowchart

A flowchart is the simple form of a business process illustration that shows process steps as different types of boxes and uses arrows to indicate their relationship with one and other. The flowchart represents the workflow required to carry out a business process or a work process. In other words, the logical and rational sequence of activities that can be performed by a machine, a system or a person. There are different forms of flowcharts. Our preferred one is the Swim lane. June 2009 Page 9

Process Q & A

A swim lane is the visual component used in process flow diagrams to depict what or who is working on a particular subset of a process. Swim lanes are arranged either horizontally or vertically and are used to group sub-processes according to responsibilities.. The swim lane flowchart differs from other flowcharts in that processes and decisions are grouped visually. Swim lane flowcharts are particularly efficient for illustrating work processes and business processes. They include training support, writing procedures, and the analysis of business requirements in an IT project. Flowcharts are a fundamental tool for process automation by means of information systems, and for process improvement initiatives. Their use is very limited as far as management processes and supporting processes are concerned.
NQI Process mapping approach

NQI Quest for Quality recommends a graphic representation in 3 stages:

Level 1: describe the clients, their requirements, and major steps in the process what is done for whom? Level 2: describe the stakeholders and actors of the process and what is done by each who is doing what? Level 3: describe the detail of tasks executed by each actor and stakeholder how tasks are executed?

NQI process maps are particularly efficient in a quality and client satisfaction approach.
The Turtle Diagram

The Turtle or Process Boundaries is a graphic representation of a process and what the process is interacting with when executed. The same element could be also described in a written text. The visual components make it easier to understand and read. For more information about the Turtle Diagram see Page 19 of this manual.

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Process Q & A Do I need a graphic representation of a process to execute it?

Not necessarily. Processes can certainly be executed without a graphic representation. However, a graphic representation helps with the understanding of the process, makes it visible. When connected to work procedures, it provides an excellent support for training.
What is the difference between process and procedures?

A procedure describes how an activity is performed by a person. It is a specified series of actions, acts, or operations which must be executed in the same manner in order to always obtain the same result under the same circumstances (for example, emergency procedures). A procedure manual provides step-by-step instructions for the person responsible for a particular duty. It is usually a written text and can include process flowcharts. A process and its illustration as a flowchart describe the tasks executed by different people and systems to deliver outputs to a client.

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Process Management 101

Process Management Q & A

Process Management Q & A

What is process management?

Process management focuses on strategically monitoring and analyzing processes to ensure achievement of business goals. Process Management is defined as the understanding, visibility and control of processes.
Purpose of Currency Department

High level streams of processes Aligned with Entente and Business Plans Business processes Work processes Management processes Supporting Processes

Results Dashboard Process Documentation Knowledge Sharing

Understanding

Visibility

Control
Ownership and accountability Process performance monitoring Improvement method

Through Process Management, the Currency Department gains confidence that the processes used to achieve business goals are the right ones and are performing at their best. Process Management is a matter of risk management: risk raised by processes not performing at their best, and/or risk raised by misaligned people or system resources.
What is the Business Process Management (BPM) Framework?

BPM is a proven, well recognized, best in class framework used by companies who excel in organizational and business performance. It is articulated around two fundamental management principles: Business processes are the engines to execute the business strategy and deliver the expected results outlined in business plans. For more information about Business Processes see Page 7 of this manual. Processes, Organization, and Systems collaborate in a balanced Infrastructure (POSI). For more information about POSI see Page 14 of this manual. Page 13

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Process Management Q & A

BPM involves the understanding, visibility and control of all processes. BPM includes more than modeling or charting of a process. BPM encompasses all processes of an organization. BPM links business process measurable outputs to the higher level strategy, mission, purpose, responsibility, goal, etc.

How does the BPM Framework work with NQI PEP criteria?

BPM Framework is consistent with the Departments strategy of moving forward with the NQI PEP levels. The NQI approach concentrates on identifying and improving key processes, while the BPM Framework assumes that all processes are key to achieving business outcomes and places them under continuous monitoring in order to identify those at risk. The NQI approach addresses individual key processes, while BPM Framework addresses not only individual processes at risk, but links and relationships between processes, and overall risk management.

What is POSI?

PROCESSES
Ownership Performance Indicators BPIR

INFRASTRUCTURE

ORGANIZATION
People and how they work together

SYSTEMS
Information Technologies Information Systems Automated Systems

To be executed, business processes use resources, people and systems. Organization is the skills and abilities of people, as well as the way they interact with each other within and outside of the department. Systems are information systems as well as machines and automated systems piloting machines. Processes, Organization and Systems compose a balanced and aligned Infrastructure (POSI). June 2009

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Process Management Q & A How can we tell a process is at risk?

With the Business Process Management (BPM) Framework there are clear criteria for identifying which processes may present the greatest risk to the achievement of goals, and which therefore should be attended to:
Three areas of risk for processes:

Process Outputs
Identifying and closely monitoring:
processes which deliver key

Process Resources
Identifying and closely monitoring processes which are using critical resources:
people resources defined as

Process Performance
Monitoring the performance of each and every process under the responsibility of Process Owner through performance indicators.

outputs to key clients defined by the Client Driver

processes which deliver

critical by workforce planning and succession planning

systems resources affected

outputs critical to the achievement of business goals

by upgrades or new system implementation

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Process Management Q & A What is the goal of process management?

The goal of process management is to monitor processes and their performance and to manage risks associated. Process Owners manage risk by:

identifying and assessing threats assessing and evaluating risks identifying ways to mitigate those risks prioritizing and planning process improvement

What are the benefits of process management?

By utilizing the Business Process Management (BPM) Framework to articulate the processes that are at risk and require attention, the Currency Department will be better at:
Planning and Risk Management:

Shifting resources towards those processes at risk when required Improving decision making for the Strategic Leadership Team, Extended Leadership Team and all levels of the Currency Department by allowing a factual approach to decision making

Organizational Excellence:

Achieving our Currency goals in a more efficient and effective way Delivering prevention based process management

Resource Management - People and Knowledge:

Supporting succession planning Facilitating cross-team work and empowering employees at all levels

Resource Management - Systems:

Actively contributing to the acquisition and implementation of new information technologies and new or upgraded information systems for a better management of information Facilitating automation of manual processes

Who is a Process Owner?

A Process Owner is somebody with a moral authority, who is responsible of and accountable for the quality of a process within an organization. Responsibilities of the Process Owner include:

making sure the proper level of documentation is maintained monitoring the performance of process analyzing associated risk championing process improvement initiatives.

For more information about Process Ownership see Page 25 of this manual.

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Process Management Q & A Who is a Process Analyst?

The Process Analyst: supports the Process Owners to analyze the performance of a process or a set of processes leads relevant process improvement initiatives is knowledgeable in mapping and documenting processes, as well as performing risk analysis identifies continuous improvement opportunities and related actions in order to recommend risk mitigation and process improvement initiatives
Who is a Subject Matter Expert (SME)?

A Subject Matter Expert can describe in detail the various duties of a given job and the knowledge and skills required to perform them. A SME is a critical resource for documenting, measuring performance, and improving a process.
What is the role of Process Management Driver Team?

The purpose of the Process Management Driver is to develop a process management toolbox and facilitate the implementation of a framework for prevention based process management and to support a factual approach to decision making. On an on-going basis, its role is to maintain process management tools, assist in training, and synchronize activities pertaining to process management. The project team has worked on articulating a vision, desired outcome, and strategy for the Currency Department. This strategy was approved by the Strategic Leadership Team (SLT) and validated by the Extended Leadership Team (ELT). The mandate of the Process Management Driver is to develop and implement a Business Process Management (BPM) framework including:

Designing and maintaining the Currency Hexagon Structuring a process management repository primarily in EDM P8: o making all process flowcharts , diagrams, and process management documents easily and widely accessible, while complying with Information Security Policies o contributing to knowledge sharing Developing the guidelines for process charting and documentation (for example, process boundaries diagram also known as process Turtle) Developing and implementing a process improvement and re-design methodology Conducting the development and production of the Process Management Handbook covering PM 101, Process Ownership and process improvement methodology Integrating Process Management with planning, reporting and risk management exercises

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Process Management Q & A Whats the difference between process management and process improvement?

Process management leads to process improvement. Process management is the ongoing process surveillance/monitoring that identifies when changes in process effectiveness or efficiency create the need for improvement. Process improvement is one of the solutions to mitigate risk. Business Process Improvement and Re-design (BPIR) is one of the ways to ensure that processes are continually being improved. For more information about BPIR see Page 33 of this manual.

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Process Management 101

Turtle Diagram

Turtle Diagram
What is the Turtle?

The Turtle or Process Boundaries is a graphic representation of a process, including the interactions that take place when the process is being executed The same elements could also be described in a written text but the visual representation makes it easier to explain and understand.

Turtle or Process Boundaries

2 Under whos
responsibility
PROCESS OWNER

Process Name
CLIENTS

1 To Whom? 5 What steps?

INPUTS OUTPUTS

Sub-Process

Sub-Process

Sub-Process

Sub-Process

3 Started by

what? Using what?

4 By whom? & What means?

INTERNAL RESOURCES PROCESSES

1 What? How much? How many?

PROCESS METRICS CYCLE TIME

EXTERNAL RESOURCES

PROCESSES SYSTEMS

PROCESSES

COST

QUALITY SYSTEMS KNOWLEDGE ENVIRONMENT & SAFETY

6 How well?

4 By whom? & What means?

The Elements of a Turtle:

1. Clients and Outputs: Outputs are everything that the process produces when it is executed: artifact, electronic document or paper document, analysis report, authorization, recommendation, etc. Outputs represents the requirements of client(s). If no one requires an output, then it does not have to be produced, and the process should not exist. Clients are the organization or organizational unit (not a specific person) who is in need of the Output. If the clients are not identified, then there should be no process.

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Turtle Diagram

2. Process Owner: See Process Owner tab. A Process Owner is somebody with a moral authority and being responsible of and accountable for the quality of a process within an organization. It is mandatory for a process to have a process owner. For more information about Process Ownership see Page 25 of this manual. 3. Inputs: Inputs are the data, materials, resources, knowledge, etc. required by the process to produce its outputs. Usually, inputs are transformed by the process to produce outputs. Triggers are a specific category of inputs: they are events, dates, times, that trigger the start of the execution of the process. 4. Sub-Processes: These are the major steps or sub-processes that the execution of the process will follow. They are always identified by an action verb or action name. 5. Resources Internal and External: Resources are everyone and everything who acts in or contributes to the execution of a process. Resources are either used and consumed, requiring replacement, or used and released for further use. Resources can be: a person (function) with specific skills and knowledge, policies to comply with, procedures, other processes (particularly management processes), information systems, machines, etc. Internal versus external: the resources may be internal to the process environment and therefore can be allocated by the process owner or they may be external to the process environment and therefore represent a dependency.

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Turtle Diagram

6. Process Performance Indicators: Process Performances Indicators are measures of how well the process is performing. In contrast to business performance indicators, they do not measure the outputs or how the outputs meet the clients requirements. Five (5) categories of performance indicators have been defined: Cycle Time: How long does it take to execute the process? How much time is required? Cost: What is the cost of executing the process? Or what has been additional cost such as unexpected expenses (using overtime rate, contracting outside, equipment, etc ..) Quality: What is the quality of the process? Not the quality of the outputs. How many loops? Rework generated? Knowledge Creation: How is the process generating knowledge when executed? How is experience about executing the process shared? What knowledge is created? Each instance of a business process creates knowledge or reusable information about the process itself and about the business value created. That knowledge or information needs to be stored for a later use. The Knowledge Creation Performance metrics indicates what information is stored for future use. Examples are: feedback forms; scorecard; record in a data base; postmortem report; incident log, etc. Impact on Environment and Safety of Person: Can the process impact the environment when executed? Is that a negative impact or positive impact? Same thing with safety of a person.

Process Performance Indicators are established within the Turtle. They need to be measured and metrics recorded in a scorecard when process is executed.
How to Create the Turtle

The Turtle is the mandatory minimum level of documentation for a process. It is the responsibility of the Process Owner to create and maintain the Turtle. A Process Owner can request support from a Process Analyst and will need to consult with SMEs. (See Template) Drawing the turtle diagram will follow the 1 to 6 sequence of components. The Process Analyst will facilitate answering questions and making sure components are consistent with one and other. When the Process Owner and SMEs are working together with the assistance of a Process Analyst, drawing the Turtle will take about 2 hours.

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Process Management 101

Hexagon Model

Hexagon Model
What is the Currency Hexagon?

The Currency Hexagon is a graphic representation of the streams of processes generating Currencys business results. It is the most important building block of the understanding and visibility of processes in the BPM framework. Streams of processes all serve the purpose of the Currency Department defined in the MTP and Entente. If the purpose changes, then the Hexagon needs to be reviewed and changed accordingly. The 2009 version of the Currency Hexagon is based on the actual purpose or desired outcomes of the Department:
To design and issue Bank Notes that Canadians can use with the highest confidence.

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Hexagon Model What are streams of processes?

All processes are chained, the outputs of one or many being the inputs of the next one. They are forming streams that deliver Currencys business goals. Four (4) Business Process Streams: their outputs are composing the value generated by the Currency Department. They are: Availability, Quality, Series, Genuineness (Authenticity): Stream AVAILABILITY: To meet demand in Bank Notes by making quantity of each denomination at quality standard available to general public through RDCs and FIs Stream QUALITY: To ensure that Notes in Circulation are meeting the Fitness Quality Standard Stream Bank Note SERIES: To define what constitute fit for purpose Bank Notes (old, current, and next series) Stream GENUINENESS/AUTHENTICITY: To encourage appropriate behaviors in general public and partners towards genuineness of Notes in Circulation

1 Management Process Stream 1 Supporting Process Stream For more information about the Different Types of Processes see Page 8 of this manual.
What the Currency Hexagon is NOT

NOT a representation of the Departments business activities NOT an org chart: processes run across the department, process streams are not another representation of Business Lines NOT a map of products and services

What is the Hexagon used for?

During development and implementation of BPM Framework the Hexagon is used to: Implement Process Monitoring including: identifying Process Owners documenting processes using the Turtle developing Performance Indicators (Scorecard) Report at Quarterly Review: Progress on Process Management Driver Process Performance Indicators (Dashboard) and short term risk analysis Establish prioritized list of Processes requiring attention (Risk Analysis) Establish a catalogue of processes and process naming convention (knowledge sharing) *** Page 24 June 2009

Process Ownership
Role and Responsibilities of the Process Owner

Who is a Process Owner? A Process Owner is somebody with a moral authority and being responsible of and accountable for the quality of a process within an organization. A Process Owner assumes ownership of processes for the purpose of continual improvement. If no one "owns" a process it is unlikely that it will ever be improved. Process Ownership is associated to a function, not a person. If a Process Owner changes function outside of or within the Business Line, then a new Process Owner needs to be identified. A process cannot have multiple owners at the same time. Responsibilities of the Process Owner Responsibilities of the Process Owner include: sponsorship, design, financing and promotion of the process, as well as its conformance with the organizations culture. The Process Owner is responsible and accountable for: monitoring the process they own assessing risk associated with the process championing/sponsoring process improvement or re-design initiatives

To meet these responsibilities, the Process Owner can accomplish the work independently, delegate to somebody on their team, or request assistance and expertise from the BET BPPA Team and a Process Analyst. During the initial phase of the BPM Framework implementation, some Process Owners can act as SME on Process Ownership and assist in the development and roll-out of some tools. Accountability
Role of the Process Owner

Process Monitoring
Creating and Storing documentation Keeping documentation up-to-date Developing performance indicators (scorecard) Analyzing the process and process work environment

Risk Assessment
Identifying risks and opportunities for process improvement Reviewing the performance of the business and work processes and the risk associated at the same time that the business results are reviewed

Improvement Initiatives
Continuously ensuring that the set of processes is optimal Launching process improvement initiatives Allocating resources for process improvement initiatives

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Role and Responsibilities of the Process Owner

Process Monitoring
Process Documentation

Keeping process documentation up-to-date is an on-going responsibility of the Process Owner. The minimal level of documentation to be maintained in terms of process management is the Turtle or Process Boundaries. Creation, storage and update of process documentation is under the responsibility of the Process Owner. Since Process Owners assess the process, and because any changes to the process ultimately mean changes to the documentation, it is essential that all updates are approved by the Process Owner. For more information about Process Documentation see Page 26 of this manual.
Process Performance Indicators

Process Owners collect performance metrics and report results in a scorecard. Depending on the cycle-time and frequency of the process, metrics can be collected more or less frequently. It is the responsibility of the Process Owner to determine the frequency.
SWOT and Process Work Environment

Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis of the process and process work environment are also under the responsibility of the Process Owner. This analysis can be considered as part of the process monitoring function or process improvement initiative. It is recommended to conduct such an analysis once a year even when no improvement is needed. For more information about SWOT see TEMPLATE BPIR Scope SWOT. Risk Assessment Process Owners use the Business Process Management (BPM) Framework to identify risks and opportunities for process improvement. The criterion for identifying which processes may present the greatest risk to the achievement of the goals and should be "attended to include:
Process Outputs: Identifying and closely monitoring:

processes which deliver key outputs to key clients defined by the Client Driver processes which deliver outputs critical to the achievement of business goals

Process Resources: Identifying and closely monitoring processes which are using critical resources: People resources defined as critical by Workforce Planning and Succession Planning Systems resources affected by upgrades or new system implementation Process Performance: Monitoring the effectiveness and efficiency of each and every process under

the responsibility of Process Owner through performance indicators

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Role and Responsibilities of the Process Owner

Processes Requiring Attention: Identification and Assessment of Risk

Key Clients /Services from Client Driver Expected Results from Entente and Business Plan

Process Outputs

Key Positions from Workforce Planning

Processes at Risk Process Resources

Process Performance from Process Monitoring

Process Performance

Systems Upgrades And New Systems

Process Risk Review Timeframes

Entente: as part of the planning and risk management exercise Quarterly Review: Process Owners are encouraged to review the performance of the business

processes, the work processes, and the risk associated, at the same time the business results are reviewed
Major incident: any major incident in the execution of a process should trigger a full review of

the process and its risk

Major change: any major change in outputs or resources of a process should trigger a full

review of the risk associated to the process For more information about Process at Risk see Page 15 of this manual.

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Role and Responsibilities of the Process Owner Improvement Initiatives

An important component of the process governance is the ability to continuously improve the performance of a process and the stream of business processes, and to constantly ensure that the set of processes is optimal. Based on process performance monitoring and a risk mitigation plan, process improvement initiatives can be launched under the championing/sponsorship of the Process Owner. The Process Owner takes on the Project Sponsor role defined in the Project Common Delivery Approach. For more information about Process Improvement Initiatives see Page 28 of this manual.
Initial Role in the Development and Implementation of Process Management

During implementation of the BPM Framework, some Process Owners are encouraged to contribute to: identifying the need for tools designing or developing tools implementing the tools

Process Owners become Subject Matter Experts (SMEs) and clients for the PM Driver Team.

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Process Ownership
Process Ownership Tools

Process Owners use tools to define, visualize, measure, control, report and improve processes. The Currency Department uses the following tools:
Turtle Diagram
Role of the Process Owner in the creation of the Turtle

The Process Owner is responsible for having the Turtle of the process created, using the Visio Template provided. The Process Owner can request assistance from BET BPPA and a Process Analyst. The Turtle Diagram is stored in P8 as an Acrobat PDF file.
Role of the Process Owner in the update of the Turtle

The Process Owner is responsible for all updates to the Turtle. Updates can not be made without the Process Owners authorization.
Flowchart

The Process Owner identifies the level of process mapping necessary: Flowchart; NQI level 1, 2, 3; physical workflow; logical diagrams; etc. The Process Owner can request assistance from BET BPPA and a Process Analyst.
Risk Analysis

Process Owners conduct risk analysis associated with process based on process performance indicators and analysis of outputs and resources. Process Owners will use the risk management framework used by the Currency Department to identify the probability and consequences of risk (risk scorecard) and to identify mitigation for process improvement opportunities.
Hexagon Model

Ownership for high level streams of processes are identified on the Currency Hexagon. With the exception of Directors and Assistant Directors, Process Owners are not involved in the definition of the Currency Hexagon. Process Owners use the Currency Hexagon as a reference to what type of process they own and where it is on the process stream.

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Process Ownership Tools Process Owner Resources

Currency Intranet Webpage www.BET-Process-Management

Templates:

TEMPLATE BPIR Scope Improvement Targets TEMPLATE BPIR Scope SWOT TEMPLATE BPIR Scope Work Environmental Assessement TEMPLATE BPM Stencil TEMPLATE Process Analysis.vsd TEMPLATE Turtle Process Boundaries TEMPLATE Turtle process boundariesVisio 2003

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Process Ownership
Who are the Process Owners?

Who Can Be a Process Owner? Process Owners are identified along the Currency Hexagon. Process Owners for high level streams of business processes, supporting processes and management processes are generally Assistant-Directors or Program Managers. It is up to them to delegate ownership and identify Process Owners for next levels of processes. It is highly recommended to include the role and responsibility of a Process Owner in their Individual Performance Agreement to secure resources for time, training, and tools. Process Owners may have to spend up to day per month on monitoring and risk assessment of a process. Benefits of Having Process Owners Process Owners are instrumental in monitoring performance of the process and safe governance. By owning the process documentation (Graphic representation, Performance Indicators, Performance Analysis) the Process Owner is accountable for its accuracy and validity. The Process Owner acts as a single point of contact for the Department about a specific process or chain of processes which prevents uncontrolled changes. ***

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Overview

What is process improvement? A process improvement initiative or project aims to improve the performance of a process or set of processes. Process improvement does not change the outputs or the clients of the process. Process improvement mainly addresses the sequence of actions in the sub-processes or steps and the resources used to execute the process. What is process re-design? A process re-design project aims at changing the outputs and potentially the clients to reorganize the way business goals will be achieved. It usually aligns with a more profound organization change and re-design of the POSI. The BPIR methodology is applicable to both improvement and re-design. What triggers the launch of a BPIR project? On an on-going basis, after the BPM Framework is fully implemented, the Currency Department conducts a risk analysis on processes and identifies a prioritized list of processes at risk. The mitigation plan is made of BPIR projects and initiatives that are planned and scheduled over the next year. It may happen that process changes are generated by a major IT project, with the acquisition and implementation of a new system or the major upgrade of an existing system. In any case, all decisions concerning a process are made by the Process Owner, who becomes the champion/sponsor of the BPIR project.

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BPIR - Process Improvement

Three Steps Method A BPIR initiative or project always has three phases: Scoping, Modeling-Analyzing-Integrating. The implementation of process changes is in fact the implementation of the changes to the IT or the HR component of the POSI . ). For more information about POSI see Page 14 of this manual.

Modeling Analyzing Redesigning

Scoping

Model as is process Analysis Redesign to be alternatives Select to be design

Integration

Share process Knowledge

source: Redesigning Enterprise Processes for e-BusinessOmar A. El Sawy

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Content of Each Phase: The following table is a template describing each phase in terms of activities, deliverables, and participants. Depending on the size of the project and whether it is an improvement or a redesign initiative, some activities can be performed at their bare minimum or to their full extend. Such a decision is made by the Project Leader and approved by the Process Owner.

Phase 1
Scoping the Process and the Project Activities
Launch project using Common Delivery Approach (CDA) Familiarize participants with methodology and/or software Determine process performance targets Define process boundaries Outline data collection plan Identify Key issues Understand best practices and define initial vision Plan for modeling phase

Phase 2
Modeling, Analyzing and Redesigning of the Process Activities
Data collection Model As Is Analyze and diagnose As Is process Design and model To Be process alternatives Select best alternative Plan for process integration phase

Phase 3
Integrating and Planning Process Implementation Activities
Examine alternatives for IT integration Examine alternatives for HR integration options Adjust process design Plan for process implementation Close project

Deliverables
Process Scoping Report PDS and work schedule

Deliverables
Process models Process Improvement Report Action items

Deliverables
Process integration plan Action items End of project

Key participants
Process Owner SMEs Client of the Process BPIR Project Team

Key participants
SMEs and Process Participants Process Owner BPIR Project Team

Key participants
IT Design Team Human Resources Process Owner BPIR Project Team

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BPIR - Process Improvement Scoping Phase:

The scoping phase includes scoping the process and launching the project: Launch project: using Common Delivery Approach(CDA) Familiarize participants with BPIR: methodology and/or software Determine process performance targets: process performance target quantifies what level of performance the process has to reach once improved or re-designed. TEMPLATE BPIR Scope
Improvement Targets Define process boundaries illustrated by the process Turtle: normally the process Turtle

diagram already exists when the BPIR project is launched. It is the responsibility of the Process Owner to make sure the BPIR team has a common understanding of it. TEMPLATE Turtle
Process Boundaries

Outline data collection plan: performance metrics, client requirements, SMEs experience, knowledge about the process Identify key issues: key issues are directly derived from the process performance metrics. A SWOT analysis and a process work environment analysis. TEMPLATE BPIR Scope SWOT
TEMPLATE BPIR Scope Work Environmental Assessment

Understand best practices and define initial vision Plan for modeling phase The work performed during the Scoping phase is documented in the Process scoping report. From a project management stand point, Project Definition Sheet and detailed work schedule are created.
ModelingAnalyzingRe-designing Phase:

Data collection: if some data remains to be collected to allow diagnosis and analysis of the As Is state, last survey and interviews have to be performed. Model As Is: if the process has not been mapped or the project requires a specific type of modeling, then the current state or As Is state of the process needs to be modeled. Analyze and diagnose As Is process: using key issues, SWOT, process work environment assessment and process performance target, the BPIR team identifies what element of the process needs to be changed and assesses the alignment with the performance targets. Design and model To Be process alternatives: using process design techniques and the 10 Streamlining principles, the BPIR team designs possible To Be alternatives, preferably more than one.

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Select best alternative: the BPIR team analyses the different alternatives, assessing primarily their impact on future performance of the process and how the different alternatives can meet the process performance targets. Plan for process integration phase For more in details on the available techniques, please refer to the NQI Quest for Quality training. The work performed during the Modeling-Analyzing-Redesigning phase is documented in the Process Improvement Report. From a project management stand point , Action items and Plan for integration are created.
Integration phase:

During the integration phase the BPIR team defines the impact of the To Be process on resources. Examine alternatives for IT integration: the BPIR team examines how the current IT system executes the new process and what changes need to occur in the IT systems (upgrades or new systems). Examine alternatives for HR integration options: the BPIR team examines what the To Be process implies in terms of changes to the organization, the job description, the position, and training. Adjust process design: if necessary, adjustments are made to the To be process to allow for better IT and HR integration. Plan for process implementation: the BPIR team evaluates the IT and HR effort, process documentation, and procedures writing. It plans the different implementation projects. Close project: the BPIR team conducts the recommended activities to close the project or initiative. The work performed during the Integration phase is documented in the Process integration report. From a project management stand point, action items are created and project is closed.

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Who is involved? Participants in a BPIR initiative or project work as a team: the BPIR team. The degree of involvement of each participant varies throughout the different phases. Process Owner: the Process Owner is the Champion of the process improvement or re-design initiative, and is responsible for the objectives of the BPIR and their achievement. Subject Expert Matters (SMEs): SMEs bring their expertise and experience of the process and of the work environment of the process. Their contribution in the As Is analysis and To Be design is equally important. A SME can also be a representative of an external resource or partner. Client of the process: particularly for process re-design projects, the role of the client is to define new requirements and their metrics. Process and Procedures Analyst: provide modeling, designing and analysis capabilities throughout the project. IT specialist: Business Architects are instrumental in defining the IT architecture that will integrate the To Be process. HR specialist: are instrumental in analyzing the impacts of the To Be process in the organizationnew job definition, training needs, new skill sets acquisition, etc. Project Leader: for process improvement projects, the Process Analyst is usually the Project Leader. For more complex process redesign projects, full process management services may be required.

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10 Streamlining Principles

The process streamlining method recommends following the principles in sequence, starting at #1 and finishing at #10. Not all principles are necessarily applicable to the process being improved or re-designed. However, it is important that the BPIR team analyzes each one of the principles in view of the improvement or redesign performance targets. Following is a description of each principle with example of improvement or redesign action that can be taken. 1. Lose Wait: Squeeze out waiting time in process links to create value Redesign time-sequential activities to be executed concurrently Create closed-loops teams for quicker flexible interaction Do not allow a support or management activity to gate a core value-adding process Design for continuous flow rather than stop-start batches Modify upstream practice to relieve downstream bottlenecks

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2. Orchestrate: Let the swiftest and most able enterprise execute Note: For the Currency Department, another enterprise means other departments at the Bank of Canada or organizations external to the Bank. Partner a process with another enterprise Outsource a process to another enterprise In source a process back to the enterprise Route the process through infomediary ( Information Broker) 3. Mass-Customize: Flex the process for any time, any place, any way Flex access by expanding time window (start to end) for the process Flex access by migrating the physical space in which the process happens Create modular process platforms Push customization to occur closest to customer (postponement) Enable dynamic customization of product offering 4. Synchronize: Synchronize the physical and virtual parts of the process Match the offerings on the physical and virtual parts of the channel Create common process platforms for physical and electronic processes Track the movement of physical products electronically 5. Digitize & Propagate: Capture information digitally at the source and propagate it throughout the process Shift the data entry to clients and digitize it (order taking) Make the process as paperless as possible and as early as possible Make information more easily accessible upstream and downstream to those who need it Shrink the distance between information and decision 6. Vitrify: Provide glass-like visibility through fresher and richer information about process status Provide on-demand tracking information for clients of the process Provide reporting capabilities that provide on-the-fly analysis Design standard partner interface processes for seamless exchange of information 7. Sensitize -Weather Watching: Fit the process with vigilant sensors and feedback loops that can prompt action Build in client feedback loops to detect process dysfunctions Enable software smarts to trigger quick business reflexes Attach environmental probes to the process to monitor change June 2009 Page 41

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8. Analyze & Synthesize: Increase the interactive analysis & synthesis capabilities around a process to generate value added Provide what-if capabilities to analyze decision options Provide slice & dice data analysis capabilities that detect patterns Provide intelligent integration capabilities across multiple information sources 9. Connect, Collect & Create: Grow intelligently reusable knowledge around the process through all who touch it Create a community of practice around the process Create expertise maps and yellows pages related to the process Build knowledge repositories that can be reused to enhance the process performance Develop FAQ database through the doers of the process Embed knowledge-sharing spaces for interactive dialogues around the process 10. Personalize: Make the process intimate with the preferences and habits of the actors (culture of the enterprise) Learn preferences of clients and actors of the process through profiling, for example: use of language Insert business rules in process that are triggered based on dynamic personal profile Use automatic collaborative filtering techniques Keep track of personal process execution habits ***

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