Developing World Class Process Maps

The Institute of Internal Auditors
Detroit Chapter
Developing World Class Process

Maps
May 22, 2013
proprietary and confidential

for more information please visit www.majoroakconsulting.com
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Student

Bios
Adam Golden
Co-Founder and Principal of
Major Oak Consulting, a
boutique Management
Consulting firm
Former Internal Auditor at
D&B
20+ years Process
Excellence
CFO Magazine winner of
REACH award for
Outstanding Reengineering
Achievement
Co-Chair of the APAs
Strategic Payroll Leadership
Task Force (SPLTF) Best
Practices Subcommittee
Keith Fournier, MA,

MBA, PMP
Senior Management
Consultant CIO Advisory
Services
Former Transformation
CIO
Managed tens of millions of
dollars of technology
projects
Received National
Recognitions for ERP,
Document Management
and Geographic Information
Systems implementations
20+ years (10 years
consulting)
5
Agenda
Process Mapping Background

Enterprise Mapping
Current State Mapping and Analysis
Capability Requirements
Future State Process Mapping
Best Practices / Wrap-up
Q&A

What is a Business Process?

Definition: A process is a series of steps
or actions performed to achieve a
specific purpose
Processes are the foundation of all
businesses, yet nearly all processes
within organizations are undocumented

Customers Experience a Companys

Processes, Not its Functions
Processes are what happen when functions come together to
perform a task
Its normally poorly designed and executed processes that
FUNCTION
cause
inefficiency
and ineffectiveness
in organizations, not
Note: If the
name
S
doesnt include a
functions
PROCESSE
S
verb, its probably not

a process
Receive &
Process Account
Application
Onboard New
Customer
Customer
Service
Dept
Sales /
Marketing
Accounts /
Credit Dept
Production /
Service
Delivery
Bill & Collect

From Customers
Handle
Customer
Complaint

So when do you map your business

processes?
Organizations map their process for specific events such as:
Reengineering / Improvement programs
Reduce costs, remove waste, increase quality, increase
efficiency, improve employee satisfaction, improve customer
satisfaction, etc.
Systems implementations
Merger & Acquisition (M&A) integrations
Sarbanes-Oxley / Compliance / internal controls awareness
However, almost anytime is the right time to map your
business processes. Process mapping is a useful tool to
develop a shared understanding of issues/problems, build
teams, produce brilliant ideas and unlock the potential in your
business.
Polling Question #1
Are you are involved in projects outside of
internal audit reviews?
A)
B)
C)
D)
Yes, Reengineering/Improvement programs

Yes, Systems implementations
Yes, Merger & Acquisition (M&A) integrations
Yes, Sarbanes-Oxley/Compliance/internal controls
awareness
E) No

10
Why map your business processes?

Mapping processes enables organizations to:
Understand what the process really is
Detailed information of what is currently happening, who does it,
predictability
Determine real process vs perceived process
Measure the effectiveness and efficiency of the process

Ensure the proper controls are in place
Understand where waste and inefficiency exist
Delays, unnecessary handoffs, duplication of effort, etc
Impact on the customer or partners
Develop new improved processes

Reduce or eliminate inefficiency
Improve the customer experience
Clarify roles and responsibilities
11
There are many ways to document a

process
It seems there are endless ways map a process. The Major
Oak methodology for process mapping is thorough, complete
and valuable to uncover current state issues and define future
state opportunities.
Process Mapping
Examples
12
Process mapping involves a series of steps,

from confirming process scope to future
state design
Before beginning the process mapping journey, it is

important not to immediately rush into the detail of
process maps. Process mapping typically takes place
Phase
1 four phases.
Phase 2
Phase 3
Phase
across
Capability
Future4
Enterprise
Overview
Enterprise
Process Map
Current State
Mapping
Current State
Process
Data Analysis

Requiremen
ts
Future
Directions
State
Design
Future State
Process
Capability
Requirements
13
An Enterprise Process Map provides context

and scope for your processes
An Enterprise Process Map critically provides context (i.e.
interfaces with other processes), as well as scope for
processes (i.e. where the processes start and end)
Note: Boxes
inside the
shaded box
represent
internal
processes and
boxes outside
represent
external
parties.
Enterprise Process Map

(example only)

14
Polling Question #2
What tool do you use to map processes?
A) Visio
B) PowerPoint
C) iGrafix
D) Other

15
Each box on the Enterprise Process Map

represents an individual process
A process map presents the detailed activities of an
individual process, who performs them, how they interact
and which systems are used
Enterprise Process
Map
Process Map
16
Polling Question #3
Have you ever built an enterprise map
before?
A) Yes
B) No

17
Process mapping involves a series of steps,

from confirming process scope to future
state design
Before beginning your process mapping journey, it is important

not to immediately rush into the detail of process maps. Process
mapping typically takes place across four phases.
Phase 1
Phase 2
Phase 3
Phase 4
Enterprise
Overview
Current State
Mapping
Capability
Requirements
Future State
Design
Enterprise Process Map
Current State Process
Future Directions
Future State Process
Data Analysis
Capability Requirements

18
How do you begin mapping the current

state?
A current state map focuses on what ACTUALLY happens in a
process. Process mapping starts with an understanding of the
process details by asking the following questions:
Current State Process Mapping
1. What transactions are part of the
process?
2. What are the specific tasks?
3. Who performs each task?
4. Who is the customer(s)?
5. Are there other stakeholders?
6. What are the decision points?
7. What systems are used?

19
There are many ways to gather data for the

current state process map
Tools to capture process information and gain an Tip: Use a
mixture of these
understanding of the current state include:
Existing documentation: always leveragetechniques
any process documentation that already exists
Interviews:
one-on-one
interviews
with
individuals who are managing, as well as
performing the process
Observations / Walkthroughs: watching a
process or individual in action can be
Conduct
transaction specific
Interviews /
Observe
Workshops: targeted working sessions with a
Processes
group of people involved in performing the
process
DILOs (Day In The Life Of): shadowing
individuals for a full day to experience first had
how they handle the process
20
The process mapping workshop should be a

fun and interactive experience
Goal: To attain a clear, agreed upon depiction of
current state process
Duration: Depends on the complexity of the process,
typically schedule a half day if under 8 attendees and
day if 8 or more attendees
Attendees: Include anyone that touches the process in
workshop
Inputters to the process
the
but
full
the
Process stakeholders at least one person per stakeholder

group
Individuals managing and performing the detailed process
Receivers of the output of the process (internal customers)
Facilitator: The primary role of the facilitator is to engage

the attendees to ensure everyone is involved. The
facilitator
be athere
skilled
facilitator
with process
In our should
experience,
is always
healthy
mapping experience
discussion about
Its best when the facilitator is not connected to the process

what really happens in the current state
being mapped so they remain unbiased by the discussion
21
Workshops: Process Mapping is a science,

but dont forget about the art
Process mapping is both a science and an art. The science is
knowing the make-up of a process and being able to distill
down to each specific task and decision point. The art is the
creative process of how to draw the process on paper to make
it come to life.

22
Key Workshop Activities / Post Workshop

Activities
Tip: Write on
Post-its or brown
Have participants describe the process paper:
Workshop Activities
steps
Ask the group

comments
for
clarifications
or
Highlight areas of discussion

Ask about the volumes / significance
Wrap up and Post Workshop Activities
BU differences
Process
exceptions
Manual steps
Re-work
Where errors
occur
Materiality
The true goal of

the workshop is
Roll up your draft map (brown butcher to identify all of
the process steps
paper)
youll have time
Capture key takeaways or parking lot for validation and
items
quantification
later
Start drafting your current state process
Thank everyone
map

23
A process map without swim lanes is like a

bike without pedals
It is extremely difficult, maybe impossible, to improve a
process if you dont know who is responsible for performing
the activity. The benefits of swim lanes are:
Tip: Setup
You know who is responsible for each step in the process
a swimlane
for every
You can see how many people actually touch the process
You can see back and forths between the same people process
participant
You can see the hand-off points and where things could fall
through the cracks

24
Key elements of your process map should

include:
Roles
Tip: Include
multiple views
of timeline /
Timeframes
cycle time

Activities
SubProcesses
highlighted
Tip: Dont
cross
connector
lines that
link process
steps
Key Notes
Permanent
Temporary
25
A current state map is the basis for

uncovering process issues and
opportunities for improvement
Once the current state has been mapped, its time to validate,
analyze and add supporting detail to the map. Examples of
current state analysis include:
Tip: Review the draft
map with core team to
Validate the map with the core functional team
validate you got it right
Identify manual tasks that can be automated
Identify any task that can be eliminated (non-value added)
Quantification of activities, tasks and transactions
Cycle times
Volumes
Defects
Handoffs
Wait times
Costs
Timeframes
Process loops / rework

26
Process Analysis can take numerous forms.

Heres a few examples: Activity analysis
Time
(hrs)
4
2
0.5
Activities
Email request in inbox
Prepare quote request
Send to manager for
review
Review quote for errors
1
Take paper back to
1
originator
Prepare paperwork for
2
client
Follow up client
4
Submit order
0.5
Await confirmation of
1
order
File confirmation
0.5
No. of tasks 10
Cycle
time
(hrs) 16.5
for more information
please visit
www.majoroakconsulting.com
Chec
k
Trans
-port
Oper
ation
Wait
Stora
ge
67% of time
spent on NVA
activities
1
1
2
1.5
3
4.5
3
9 27
1
0.5
Process Analysis Example: Resource

variation
Variance due to:

System navigation
& processing
techniques
Associate 1
Associate 2
Associate 3
Associate 4
Associate 5
00:00:00
00:02:53
00:05:46
00:08:38
00:11:31
Duration (hh:mm:ss)
28
Now annotate the map, highlighting issues,

opportunities, best practices and potential
Improvement
projects
Projects
Key Volumes
Issues /
Opportunities

Advanced
Technique: Color
code activity boxes
to highlight
activity subcharacteristics
(manual, fax,
regulatory, etc.)
Best Practices
29
Sample Completed Process Map

30
Sample Process Map

31
Sample Process Map

32
Current State Mapping Using the Output

Finalize the map
Tip: Use the final

current state map as
a training tool for
new employees
Identify improvement projects

Discuss opportunities with team and
management
Prioritize improvement projects and kickoff next
steps

33
Phase 1
Enterprise
Overview
Enterprise
Process Map
Phase 2
Current State
Mapping
Current State
Process
Data Analysis

Phase 3
Capability
Requiremen
ts
Future
Directions
Phase
Future4
State
Design
Future State
Process
Capability
Requirements
34
Capability Requirements must be

determined before mapping your Future
State Processes
Before mapping future state processes, it is important to
understand the future direction of the business and obtain
consensus from the Management Team regarding their
expectations and business capabilities required to support the
business in the future.
Key Questions:
What capabilities do they have today?
What capabilities do they need for the future state?
What process, people and technologies are needed?
What are the customer expectations at each key point of
interaction with the business?
35
Determine expectations at each customer

interaction point and the capabilities
required to meet them
Customer Contact /
Key Interaction
Points
1. Process A
2. Process B
3. Process C
4. Process D
5. ...
6.
n. Process n

Customer
Expectation
s
Operational
Capability
Requirements
Organizatio
ns
Expectation
s
36
Phase 1
Enterprise
Overview
Enterprise
Process Map
Phase 2
Current State
Mapping
Current State
Process
Data Analysis

Phase 3
Capability
Requiremen
ts
Future
Directions
Phase
Future 4
State
Design
Future State
Process
Capability
Requirements
37
Future state mapping transforms from what

actually happens to what should happen
A future state map focuses on what SHOULD happen in a
process by asking the following questions:
Future State Process Mapping

1. Who should perform each task?
2. What should be the specific
tasks?
3. What should be the decision
points?
4. Who is the customer(s)?
5. Who are the stakeholders?
6. How should we resolve the issues
with the current process?
38

Future state maps typically begin with the

current state, but starting with a blank page
can be powerful
Start your ideal state process map with one or all of the
following techniques:
Use your current state process maps and analysis to

identify non-value add steps
Re-sequence / amend the existing activities to streamline
the process
Consolidate activities to one role where possible to minimize
hand-offs
Brainstorm fresh ideas from scratch (sticky notes!)

39
Identifying non-value add steps in the

current state should involve all the relevant
parties
Remove nonvalue add
steps

40
Ultimately, youll have a future state process

map
Current State
Future State

Key Differences:
Removed non valueadd (NVA) activities
Automated steps
Consolidated
activities
Work moved to the
appropriate role
41
Wrap Up / Best Practices

42
Keep these Best Practices in mind when

mapping within your organization
1. The people doing the work are the best source of realistic
data
They are the factual authorities on that work treat them with
respect
To get the real story, remove bosses from room during process
mapping
2. Generalities are the enemy of good process maps - push for

specifics
3. Gather data with multiple approaches - explanation and
demonstration
4. Quantify as much as possible quantification = relevance
5. Validate the process map multiple times if necessary
6. Swim lanes make the map much more relevant
7. Capture process exceptions, but dont map them
8. Real test is if the process map is vouched for by those doing
43
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44
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45
Speaker Information
Thank You!
Adam Golden
Keith Fournier
Principal
Senior Management Consultant
Major Oak Consulting, LLC
Major Oak Consulting, LLC
agolden@majoroakconsulting.cokfournier@majoroakconsulting.c
m
om
973.701.0872
419.344.6504
46

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The Institute of Internal Auditors

Developing World Class Process

proprietary and confidential

If You Have Questions

proprietary and confidential

Earning CPE Credit

Attend the webcast on individual computers

proprietary and confidential

Please tell us your member status

Member Detroit Chapter

proprietary and confidential

Keith Fournier, MA,

Process Mapping Background

proprietary and confidential

What is a Business Process?

proprietary and confidential

Customers Experience a Companys

verb, its probably not

Bill & Collect

proprietary and confidential

So when do you map your business

Yes, Reengineering/Improvement programs

proprietary and confidential

Why map your business processes?

Measure the effectiveness and efficiency of the process

Develop new improved processes

There are many ways to document a

Process mapping involves a series of steps,

Before beginning the process mapping journey, it is

proprietary and confidential

An Enterprise Process Map provides context

Enterprise Process Map

proprietary and confidential

proprietary and confidential

Each box on the Enterprise Process Map

proprietary and confidential

Process mapping involves a series of steps,

Before beginning your process mapping journey, it is important

Enterprise Process Map

Current State Process

Future State Process

proprietary and confidential

How do you begin mapping the current

proprietary and confidential

There are many ways to gather data for the

The process mapping workshop should be a

Process stakeholders at least one person per stakeholder

Facilitator: The primary role of the facilitator is to engage

Its best when the facilitator is not connected to the process

Workshops: Process Mapping is a science,

proprietary and confidential

Key Workshop Activities / Post Workshop

Ask the group

Highlight areas of discussion

The true goal of

proprietary and confidential

A process map without swim lanes is like a

proprietary and confidential

Key elements of your process map should

proprietary and confidential

A current state map is the basis for

proprietary and confidential

Process Analysis can take numerous forms.

Process Analysis Example: Resource