Thank you for downloading this AMACOM eBook Sign up for our newsletter, AMACOM BookAlert, and receive special offers, access to free chapter downloads, and info on the latest new releases from AMACOM, the book publishing division of American Management Association To sign up, visit our website: www.amacombooks.org The Power of Business Process Improvement Second Edition The Power of Business Process Improvement 10 Simple Steps to Increase Effectiveness, Efficiency, and Adaptability Second Edition Susan Page To Greg without his encouragement and ongoing support, this book would never have happened Contents CHAPTER The Roadmap: Learning How to Navigate Can You Do It? The Journey The Ten Simple Steps to Business Process Improvement Step 1: Develop the Process Inventory Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Step 7: Create Internal Controls, Tools, and Metrics Step 8: Test and Rework Step 9: Implement the Change Step 10: Drive Continuous Improvement The Executive Summary Business Process Management Case Study 1: Training and Development Case Study 2: Recruitment Process in Hong Kong Chapter Summary CHAPTER Step 1: Develop the Process Inventory: Identifying and Prioritizing the Process List The Process Inventory Process Prioritization Developing Criteria Determining Scale Applying Weighting Chapter Summary: Step Time Estimate Build the Business Process Inventory Sponsor Meeting Establish Categories, Criteria, Scale, Weighting Complete the Process Prioritization Table A Second Sponsor Meeting What You Have Achieved Knowledge Check CHAPTER Step 2: Establish the Foundation: Avoiding Scope Creep The Eight Sections of the Scope Definition Document Section 1: Process Name Section 2: Process Owner Section 3: Description Section 4: Scope Section 5: Process Responsibilities Section 6: Client and Client Needs Section 7: Key Stakeholders and Interests Section 8: Measurements of Success Chapter Summary: Step Time Estimate First Project Team Meeting Sponsor Meeting What You Have Achieved Knowledge Check CHAPTER Step 3: Draw the Process Map: Flowcharting and Documenting Process Map Overview Drawing the Process Map Box Box Box Boxes 4–8 The Cross-Functional Process Map Continuing the Work from Meeting to Meeting Documenting the Process Process Mapping Tools Microsoft Visio SmartDraw Chapter Summary: Step Time Estimate Second Project Team Meeting Postmeeting Work Follow-on Project Team Meetings What You Have Achieved Knowledge Check CHAPTER Steps 4–5: Estimate Time and Cost and Verify the Process Map: Introducing Process and Cycle Time and Gaining Buy-In Business Process Timing Process Time Cycle Time Process Cost People Costs Tool Costs Overhead Costs Putting It All Together Alternative Cuts of the Data Analyzing the Cost Estimate Columns Verify the Process Map Process Workers Stakeholders Sponsor Chapter Summary: Steps 4–5 Time Estimate Project Team Meeting Postmeeting Work Sponsor Meeting Verify the Process Map Postvalidation Work What You Have Achieved Knowledge Check CHAPTER Step 6: Apply Improvement Techniques: Challenging Everything Eliminate Bureaucracy Value Added Eliminate Duplication Simplification Reduce Cycle Time Automation Impact Analysis Chapter Summary: Step Time Estimate Project Team Meeting Postmeeting Work What You Have Achieved Knowledge Check CHAPTER Step 7: Create Internal Controls, Tools, and Metrics: Making It Real Internal Controls Tools Job Aids Custom Email Forms Excel Tools Metrics Chapter Summary: Step Time Estimate Project Team Meeting Postmeeting Work Project Team Meeting What You Have Achieved Knowledge Check CHAPTER Step 8: Test and Rework: Making Sure It Works The Five Steps in Testing the Business Process Step 1: Create the Test Plan Step 2: Develop Test Sets Step 3: Implement the Test Plan Step 4: Summarize Feedback and Rework Step 5: Retest Chapter Summary: Step Time Estimate Create the Test Plan Create Test Sets, Gain Resource Approval, Develop Feedback Tool Implement the Test Plan and Rework What You Have Achieved Knowledge Check CHAPTER Step 9: Implement the Change: Preparing the Organization The Implementation Plan Overview of the Three Phases of the Implementation Plan The Design Phase The Development Phase The Implementation Phase The Four Tracks in the Implementation Phase Change Management Track Testing Track Communications Track (Communication Plan) Training Track (Training Plan) Chapter Summary: Step Time Estimate Develop the Implementation Plan Refine the Impact Analysis Develop the Communication Plan Develop the Training Plan Gain Sponsor Buy-In What You Have Achieved Knowledge Check CHAPTER 10: Step 10: Drive Continuous Improvement: Embracing the New Mindset The Continuous Improvement Cycle Evaluate Test Assess Execute Continuous Improvement Plan Chapter Summary: Step 10 ABOUT OUR AUTHORS AMACOM authors—experts and leaders in their fields—are practitioners, world-class educators, and journalists, all with valuable information and unique insights to share Don’t just train– transform Great skills drive great performance When true talent transformation takes place, the possibilities for better business outcomes are almost unlimited American Management Association is widely recognized as a world leader in professional development We support the goals of individuals, organizations, and government agencies with a complete range of talent transformation solutions Our flexible training fits your learning preferences, your busy schedule—and your ongoing career and business needs Learn with AMA anytime, anywhere Be part 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Microsoft Office Project®; Microsoft Office SharePoint®; Microsoft Office Visio®; Microsoft Office Word®; SmartDraw®; Winshuttle; IBM Blueworks Live; iGrafx Flowcharter; Promapp Library of Congress Cataloging-in-Publication Data Page, Susan (Susan Ann) The power of business process improvement : 10 simple steps to increase effectiveness, efficiency, and adaptability / Susan Page pages cm Earlier edition: 2010 Includes bibliographical references and index ISBN 978-0-8144-3661-5 (hardcover) — ISBN 978-0-8144-3662-2 (ebook) Workflow—Management Organizational effectiveness Management I Title HD62.17.P34 2016 658.5'1—dc23 2015008792 © 2016 Susan Page All rights reserved Printed in the United States of America This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management 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growth at every step of one’s career journey Printing number 10 Table of Contents Title Contents Chapter 1: The Roadmap: Learning How to Navigate Can You Do It? The Journey The Ten Simple Steps to Business Process Improvement Step 1: Develop the Process Inventory Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Step 7: Create Internal Controls, Tools, and Metrics Step 8: Test and Rework Step 9: Implement the Change Step 10: Drive Continuous Improvement The Executive Summary Business Process Management Case Study 1: Training and Development Case Study 2: Recruitment Process in Hong Kong Chapter Summary Chapter 2: Step 1: Develop the Process Inventory: Identifying and Prioritizing the Process List The Process Inventory Process Prioritization Developing Criteria Determining Scale Applying Weighting Chapter Summary: Step Time Estimate Build the Business Process Inventory Sponsor Meeting Establish Categories, Criteria, Scale, Weighting Complete the Process Prioritization Table A Second Sponsor Meeting What You Have Achieved Knowledge Check Chapter 3: Step 2: Establish the Foundation: Avoiding Scope Creep The Eight Sections of the Scope Definition Document Section 1: Process Name Section 2: Process Owner Section 3: Description Section 4: Scope Section 5: Process Responsibilities Section 6: Client and Client Needs Section 7: Key Stakeholders and Interests Section 8: Measurements of Success Chapter Summary: Step Time Estimate First Project Team Meeting Sponsor Meeting What You Have Achieved Knowledge Check Chapter 4: Step 3: Draw the Process Map: Flowcharting and Documenting Process Map Overview Drawing the Process Map Box1 Box Box Boxes 4–8 The Cross-Functional Process Map Continuing the Work from Meeting to Meeting Documenting the Process Process Mapping Tools Microsoft Visio SmartDraw Chapter Summary: Step Time Estimate Second Project Team Meeting Postmeeting Work Follow-on Project Team Meetings What You Have Achieved Knowledge Check Chapter 5: Steps 4–5: Estimate Time and Cost and Verify the Process Map: Introducing Process and Cycle Time and Gaining Buy-In Business Process Timing Process Time Cycle Time Process Cost People Costs Tool Costs Overhead Costs Putting It All Together Alternative Cuts of the Data Analyzing the Cost Estimate Columns Verify the Process Map Process Workers Stakeholders Sponsor Chapter Summary: Steps 4–5 Time Estimate Project Team Meeting Postmeeting Work Sponsor Meeting Verify the Process Map Postvalidation Work What You Have Achieved Knowledge Check Chapter 6: Step 6: Apply Improvement Techniques: Challenging Everything Eliminate Bureaucracy Value Added Eliminate Duplication Simplification Reduce Cycle Time Automation Impact Analysis Chapter Summary: Step Time Estimate Project Team Meeting Postmeeting Work What You Have Achieved Knowledge Check Chapter 7: Step 7: Create Internal Controls, Tools, and Metrics: Making It Real Internal Controls Tools Job Aids Custom Email Forms Excel Tools Metrics Chapter Summary: Step Time Estimate Project Team Meeting Postmeeting Work Project Team Meeting What You Have Achieved Knowledge Check Chapter 8: Step 8: Test and Rework: Making Sure It Works The Five Steps in Testing the Business Process Step 1: Create the Test Plan Step 2: Develop Test Sets Step 3: Implement the Test Plan Step 4: Summarize Feedback and Rework Step 5: Retest Chapter Summary: Step Time Estimate Create the Test Plan Create Test Sets, Gain Resource Approval, Develop Feedback Tool Implement the Test Plan and Rework What You Have Achieved Knowledge Check Chapter 9: Step 9: Implement the Change: Preparing the Organization The Implementation Plan Overview of the Three Phases of the Implementation Plan The Design Phase The Development Phase The Implementation Phase The Four Tracks in the Implementation Phase Change Management Track Testing Track Communications Track (Communication Plan) Training Track (Training Plan) Chapter Summary: Step Time Estimate Develop the Implementation Plan Refine the Impact Analysis Develop the Communication Plan Develop the Training Plan Gain Sponsor Buy-In What You Have Achieved Knowledge Check Chapter 10: Step 10: Drive Continuous Improvement: Embracing the New Mindset The Continuous Improvement Cycle Evaluate Test Assess Execute Continuous Improvement Plan Chapter Summary: Step 10 Time Estimate Develop the Continuous Improvement Plan and Schedule Gain Sponsor Buy-in Test, Assess, Execute What You Have Achieved Knowledge Check Chapter 11: Create the Executive Summary: Getting the Recognition The Six Sections of the Executive Summary Section 1: Project Focus Section 2: Goals Section 3: Summary Section 4: Key Findings Section 5: Deliverables Section 6: Appendix Chapter Summary Time Estimate Create Analytical Tables Write the Executive Summary What You Have Achieved Chapter 12: Business Process Management: BPM and Other Improvement Techniques Business Process Management Business Process Modeling (BPM) Business Process Model and Notation (BPMN) Gateways Pools Swim Lanes Events Activity Loops Flow Lines Software Products IBM Blueworks Live iGrafx Flowcharter Promapp Other Process Improvement Techniques TQM (Total Quality Management), Continuous Improvement, and Kaizen Hoshin Kanri Reengineering Six Sigma Lean Lean Six Sigma Chapter Summary What You Have Achieved Chapter 13: Case Study 1: Training and Development Background Step 1: Develop the Process Inventory Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost Part 1: List Process Activities and Process Time Part 2: Identify Annual Volume Part 3: Determine the FTE Formula Part 4: Determine Employee Costs Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Benchmarking A New Approach Step 7: Create Internal Controls, Tools, and Metrics Internal Controls Tools Metrics Step 8: Test and Rework Step 9: Implement Change Communication Track Training Track Change Management Track Step 10: Drive Continuous Improvement Chapter Summary What You Have Achieved Chapter 14: Case Study 2: Recruitment Process in Hong Kong Background Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost List Process Activities and Process Time Identify Volume Determine FTE Formula Determine Employee Costs Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Step 7: Create Internal Controls, Tools, and Metrics Step 8: Test and Rework Step 9: Implement Change Step 10: Drive Continuous Improvement Chapter Summary What You Have Achieved Index Why Project Risk Management? ABOUT THE AUTHOR FREE SAMPLE CHAPTER FROM IDENTIFYING AND MANAGING PROJECT RISK, THIRD EDITION BY TOM KENDRICK COPYRIGHT Table of Contents Title Contents Chapter 1: The Roadmap: Learning How to Navigate Can You Do It? The Journey The Ten Simple Steps to Business Process Improvement Step 1: Develop the Process Inventory Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Step 7: Create Internal Controls, Tools, and Metrics Step 8: Test and Rework Step 9: Implement the Change Step 10: Drive Continuous Improvement The Executive Summary Business Process Management Case Study 1: Training and Development Case Study 2: Recruitment Process in Hong Kong Chapter Summary Chapter 2: Step 1: Develop the Process Inventory: Identifying and Prioritizing the Process List The Process Inventory Process Prioritization Developing Criteria Determining Scale Applying Weighting Chapter Summary: Step Time Estimate Build the Business Process Inventory Sponsor Meeting Establish Categories, Criteria, Scale, Weighting Complete the Process Prioritization Table A Second Sponsor Meeting What You Have Achieved Knowledge Check Chapter 3: Step 2: Establish the Foundation: Avoiding Scope Creep The Eight Sections of the Scope Definition Document Section 1: Process Name Section 2: Process Owner Section 3: Description Section 4: Scope Section 5: Process Responsibilities Section 6: Client and Client Needs Section 7: Key Stakeholders and Interests Section 8: Measurements of Success Chapter Summary: Step Time Estimate First Project Team Meeting Sponsor Meeting What You Have Achieved Knowledge Check Chapter 4: Step 3: Draw the Process Map: Flowcharting and Documenting Process Map Overview Drawing the Process Map Box1 Box Box Boxes 4–8 The Cross-Functional Process Map Continuing the Work from Meeting to Meeting Documenting the Process Process Mapping Tools Microsoft Visio SmartDraw Chapter Summary: Step Time Estimate Second Project Team Meeting Postmeeting Work Follow-on Project Team Meetings What You Have Achieved Knowledge Check Chapter 5: Steps 4–5: Estimate Time and Cost and Verify the Process Map: Introducing Process and Cycle Time and Gaining Buy-In Business Process Timing Process Time Cycle Time Process Cost People Costs Tool Costs Overhead Costs Putting It All Together Alternative Cuts of the Data Analyzing the Cost Estimate Columns Verify the Process Map Process Workers Stakeholders Sponsor Chapter Summary: Steps 4–5 Time Estimate Project Team Meeting Postmeeting Work Sponsor Meeting Verify the Process Map Postvalidation Work What You Have Achieved Knowledge Check Chapter 6: Step 6: Apply Improvement Techniques: Challenging Everything Eliminate Bureaucracy Value Added Eliminate Duplication Simplification Reduce Cycle Time Automation Impact Analysis Chapter Summary: Step Time Estimate Project Team Meeting Postmeeting Work What You Have Achieved Knowledge Check Chapter 7: Step 7: Create Internal Controls, Tools, and Metrics: Making It Real Internal Controls Tools Job Aids Custom Email Forms Excel Tools Metrics Chapter Summary: Step Time Estimate Project Team Meeting Postmeeting Work Project Team Meeting What You Have Achieved Knowledge Check Chapter 8: Step 8: Test and Rework: Making Sure It Works The Five Steps in Testing the Business Process Step 1: Create the Test Plan Step 2: Develop Test Sets Step 3: Implement the Test Plan Step 4: Summarize Feedback and Rework Step 5: Retest Chapter Summary: Step Time Estimate Create the Test Plan Create Test Sets, Gain Resource Approval, Develop Feedback Tool Implement the Test Plan and Rework What You Have Achieved Knowledge Check Chapter 9: Step 9: Implement the Change: Preparing the Organization The Implementation Plan Overview of the Three Phases of the Implementation Plan The Design Phase The Development Phase The Implementation Phase The Four Tracks in the Implementation Phase Change Management Track Testing Track Communications Track (Communication Plan) Training Track (Training Plan) Chapter Summary: Step Time Estimate Develop the Implementation Plan Refine the Impact Analysis Develop the Communication Plan Develop the Training Plan Gain Sponsor Buy-In What You Have Achieved Knowledge Check Chapter 10: Step 10: Drive Continuous Improvement: Embracing the New Mindset The Continuous Improvement Cycle Evaluate Test Assess Execute Continuous Improvement Plan Chapter Summary: Step 10 Time Estimate Develop the Continuous Improvement Plan and Schedule Gain Sponsor Buy-in Test, Assess, Execute What You Have Achieved Knowledge Check Chapter 11: Create the Executive Summary: Getting the Recognition The Six Sections of the Executive Summary Section 1: Project Focus Section 2: Goals Section 3: Summary Section 4: Key Findings Section 5: Deliverables Section 6: Appendix Chapter Summary Time Estimate Create Analytical Tables Write the Executive Summary What You Have Achieved Chapter 12: Business Process Management: BPM and Other Improvement Techniques Business Process Management Business Process Modeling (BPM) Business Process Model and Notation (BPMN) Gateways Pools Swim Lanes Events Activity Loops Flow Lines Software Products IBM Blueworks Live iGrafx Flowcharter Promapp Other Process Improvement Techniques TQM (Total Quality Management), Continuous Improvement, and Kaizen Hoshin Kanri Reengineering Six Sigma Lean Lean Six Sigma Chapter Summary What You Have Achieved Chapter 13: Case Study 1: Training and Development Background Step 1: Develop the Process Inventory Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost Part 1: List Process Activities and Process Time Part 2: Identify Annual Volume Part 3: Determine the FTE Formula Part 4: Determine Employee Costs Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Benchmarking A New Approach Step 7: Create Internal Controls, Tools, and Metrics Internal Controls Tools Metrics Step 8: Test and Rework Step 9: Implement Change Communication Track Training Track Change Management Track Step 10: Drive Continuous Improvement Chapter Summary What You Have Achieved Chapter 14: Case Study 2: Recruitment Process in Hong Kong Background Step 2: Establish the Foundation Step 3: Draw the Process Map Step 4: Estimate Time and Cost List Process Activities and Process Time Identify Volume Determine FTE Formula Determine Employee Costs Step 5: Verify the Process Map Step 6: Apply Improvement Techniques Step 7: Create Internal Controls, Tools, and Metrics Step 8: Test and Rework Step 9: Implement Change Step 10: Drive Continuous Improvement Chapter Summary What You Have Achieved Index Why Project Risk Management? ABOUT THE AUTHOR FREE SAMPLE CHAPTER FROM IDENTIFYING AND MANAGING PROJECT RISK, THIRD EDITION BY TOM KENDRICK COPYRIGHT ... www.amacombooks.org The Power of Business Process Improvement Second Edition The Power of Business Process Improvement 10 Simple Steps to Increase Effectiveness, Efficiency, and Adaptability Second... build the process inventory, break major processes into subprocesses to make sure you not overlook any business process Another way to organize the process inventory is to group all business processes... about the beginning and end of the business process This is the role of the scope definition document, which includes the process boundaries and other baseline information about the business process